Location: Nashville-Davidson--Murfreesboro--Franklin, TN | Metro: Clarksville, TN-KY 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 | $1,090 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,590 | $412,097 | 0.39% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 37032 stands at $88,157, providing insight into the financial capacity of local households. At a market rate of $1,314 per month, as reported by the Census ACS, it becomes evident that housing expenses represent a significant portion of the average household budget. This figure suggests that a substantial number of residents may find it challenging to cover their rent without careful financial planning.
In comparison, the Fair Market Rent (FMR) set by HUD for ZIP code 37032 in fiscal year 2024 is $1,270. This means that the voucher payment standard aligns closely with the market rate, differing only by $44. For renters, this implies that voucher holders can access housing options that are nearly equivalent to the market rate, thus providing a viable alternative for those seeking affordable living solutions.
With 18.8% of the 5,453 population being renters, the competition among landlords in ZIP code 37032 is relatively moderate. However, the affordability gap between the median income and the market rent rate highlights the necessity for landlords to consider both voucher and cash-pay strategies. Vouchers offer a consistent and reliable source of rental income, albeit slightly below market rates, while cash-paying tenants might provide higher monthly rents but come with the risk of potential payment delays or defaults.
The takeaway for landlords is clear: understanding the balance between voucher and cash-pay tenants is crucial. Given the close alignment between voucher payments and market rates, landlords should recognize the value in accepting vouchers. This approach can help secure a steady stream of income and maintain occupancy rates, which is particularly important given the moderate competition in the area. For those who opt to focus on cash-paying tenants, it is imperative to ensure that the properties remain attractive and competitive, perhaps through strategic pricing or enhancements that appeal to the higher-income demographic present in ZIP code 37032.
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.