Location: Nashville-Davidson--Murfreesboro--Franklin, 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 | $1,190 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $430,679 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 37031 is a residential area with a population of 3,926 individuals. It is predominantly an owner-occupied neighborhood, where only 5.9% of residents are renters. The median household income here is strong at $98,114, indicating a relatively affluent community. The median home value stands at $423,986, reflecting the high cost of living and property values in the area.
From an investment perspective, the Fair Market Rent (FMR) for ZIP 37031 as of the fiscal year 2024 is set at $1,340. This figure represents the maximum amount that a Section 8 tenant can pay for rent. However, the lack of specific market rent data makes it challenging to compare the FMR against local rental rates directly. Given the limited number of renters and the high median income, it's reasonable to infer that the local rental market is likely to be competitive and potentially higher than the FMR, although exact figures are not available.
For landlords and small-portfolio investors considering Section 8 participation in ZIP 37031, the decision should hinge on the type of investment strategy they employ. Due to the low percentage of renters and the high median income, this area might not be ideal for a hands-off voucher operator. Instead, it could be more suitable for a hands-on value-add buyer who is willing to renovate properties and manage them actively. Such an investor could leverage the strong local economy and high demand for quality rentals to achieve better occupancy rates and potentially higher returns.
In conclusion, ZIP 37031 presents a unique opportunity for investors willing to engage in active property management. While the number of potential Section 8 tenants is limited, the overall economic health of the area suggests that well-managed and renovated properties can attract tenants willing to pay above the FMR, making it a worthwhile investment for those with the right approach.
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.