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 | $1,380 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,030 | $375,220 | 0.54% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37035 in fiscal year 2024 is set at $1280. This figure represents the maximum amount that a landlord can receive through the Section 8 program for renting a unit in this area. It's important to note that this is not the rent you will charge your tenants; rather, it's the benchmark used by the Housing Choice Voucher Program to determine how much they will pay on behalf of eligible renters.
In comparison, the average rent for ZIP 37035, according to the latest Census American Community Survey data, stands at $791 per month. This suggests that the Section 8 payment standard is higher than the typical market rate, potentially offering a more stable income stream for landlords who participate in the program.
The 14.8% renter share indicates that nearly one in every seven residents in this ZIP code are renters. This statistic points to a steady demand for rental properties, making it a viable option for those looking to invest in the rental market. However, the demand alone doesn't guarantee profitability. The average home value in this area is approximately $404,371, which gives an idea of the potential acquisition cost for a property to be rented out under the Section 8 program.
Before deciding to take the plunge into Section 8 rentals, verify that your property meets all the required standards set by the Housing Authority. These standards include safety, health, and structural soundness, ensuring that the unit is habitable and up to code. Compliance with these standards is crucial, as failing to meet them could result in penalties or loss of eligibility for the program.
To summarize, the FMR of $1280 offers a higher payment standard compared to the local average of $791, indicating a potential for better financial stability. With a 14.8% renter share, there is a solid demand for rental units, but the high acquisition cost of around $404,371 should also be considered. Ensure your property is up to the Housing Authority's standards to avoid any issues once enrolled in the program.
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.