Location: Hickman 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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $378,674 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 37025 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 37025 in fiscal year 2024 is set at $1270, while the Census ACS reports the average market rent at $853. This means there is a $417 difference, which translates to a 48.9% gap between what landlords can charge under Section 8 and the current market rate.
Given that the FMR exceeds the market rent, it becomes evident that properties in ZIP 37025 can attract voucher tenants at a higher rental rate, making this area a prime location for yield-focused investments. Landlords can leverage the higher FMR to increase their rental income without pricing out potential tenants who rely on housing vouchers. This scenario creates an opportunity to enhance cash flow and investment returns, especially considering the relatively low percentage of renters in the area—only 8.1%.
The median home value in ZIP 37025 stands at $333,839, indicating a moderate property price range. Meanwhile, the median income is reported at $77,846, suggesting that residents have a stable financial base but may still find it challenging to afford higher rents. Consequently, voucher tenants provide a reliable source of income for landlords, ensuring steady occupancy and reducing vacancy risks.
However, it's crucial to understand the implications of renting to voucher tenants. While the FMR allows for higher rents, landlords must comply with HUD regulations and maintain the property to certain standards. Additionally, the process of securing and managing voucher tenants involves administrative tasks and potential delays in rent payments. Despite these challenges, the financial benefits of renting at the FMR level significantly outweigh the costs, making ZIP 37025 an attractive option for small-portfolio investors looking to maximize yields.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.