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 | $1,040 |
| 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 | $351,285 | 0.43% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 37036, located in the Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area, reveals a favorable environment for cashflow generation. The HUD Fair Market Rent (FMR) for the area is set at $1270 per month for the fiscal year 2024. In contrast, the Census ACS data shows that the average market rent is $897 per month. This indicates that voucher tenants can easily cashflow at the FMR rate, providing a significant margin over the typical rental rates.
To further understand the investment potential, consider the median home value in the area, which stands at $345,283. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $897, the annual rent is approximately $10,764, resulting in a rent-to-price ratio of about 3.1%. This suggests that rental income is relatively low compared to the median home value, indicating that the primary investment appeal in this area may be less about generating high rental yields and more about other factors such as property appreciation or stability.
The dynamics between renting and buying in this market are also worth noting. The median Days on Market (DOM) is listed as N/A, which could imply that sales data is not consistently available or is highly variable. Additionally, the price-cut share is a mere 0.2%, suggesting that homes generally sell close to their asking price without significant reductions. These factors indicate a stable housing market where property values are likely to remain consistent, making it a reliable location for long-term investments.
In conclusion, the strongest angle for Section 8 investors in ZIP 37036 is cashflow. Given the substantial difference between the HUD FMR and the average market rent, landlords and small-portfolio investors can expect to generate positive cashflow with minimal risk, making this area an attractive choice for those prioritizing financial returns from rental properties.
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.