Location: Macon County, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,830 | $375,982 | 0.49% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 37022 for Section 8 investments must evaluate several key factors to make an informed decision. The first step involves assessing whether the Fair Market Rent (FMR) of $1270 for the fiscal year 2024 can cover the debt service on a property valued at $350,976. To determine this, calculate the monthly mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage at 4%, the monthly principal and interest payment would be approximately $1650. Given that the FMR does not exceed this amount, the answer to the first question is No.
If the FMR does not clear the debt service, the investment would not be viable under Section 8 alone. However, if you were to consider other sources of income or lower financing costs, further analysis might be warranted.
The second question to address is whether the market rent of $962 (as per Census ACS data) is above, at, or below the FMR. In this case, the market rent is below the FMR, indicating that properties could potentially be rented out at rates higher than the market average if they qualify for Section 8 vouchers. This suggests a positive aspect for landlords willing to accept Section 8 tenants, as they could benefit from higher rental income compared to the local market rate.
The third consideration is the demand for rental properties. With 9.2% of the population being renters and the days-on-market (DOM) figure noted as N/A, there is insufficient data to conclusively assess demand. However, the 9.2% rental rate suggests a modest demand for rental units. It is important to note that without a specific DOM figure, it is difficult to gauge how quickly properties are typically leased in this area.
Based on these criteria, the decision tree branches as follows:
If the FMR cannot cover the debt service, the investment is not advisable solely for Section 8 purposes. In ZIP 37022, with an FMR of $1270 and a required debt service of around $1650, the answer is No.
If the FMR exceeds market rent, as it does in this case ($1270 vs $962), then accepting Section 8 tenants could provide a financial advantage over renting to non-voucher holders. This makes the investment more attractive for those interested in Section 8 properties.
The rental demand is moderate but lacks specific DOM data, leading to an It Depends outcome. Landlords need to weigh the potential benefits of higher rental income against the risks associated with limited demand data.
In conclusion, while the potential for higher rental income exists, the primary barrier is the inability of the FMR to cover the debt service. Therefore, unless alternative revenue streams or financing options are considered, the recommendation is No for investing in ZIP 37022 purely for Section 8 properties.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.