Location: Marshall County, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,660 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 37046 for Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1920 cover the debt service on a property valued at $1,260,388?
No. The FMR of $1920 is unlikely to cover the debt service on a property of that value. Debt service for such a high-value property would typically exceed this amount, making it financially unviable without additional income sources.
2) How does the market rent of $3,501 compare to the FMR?
Market rent is above FMR. At $3,501, the market rent significantly exceeds the FMR of $1920. This suggests that the area is likely more attractive for market-rate rentals rather than Section 8 tenants. Landlords might prefer to seek higher rents from non-Section 8 tenants.
3) Is there sufficient demand with 12.1% renters and an unknown number of days on the market (DOM)?
It depends. With only 12.1% of the population being renters, the demand for rental properties is relatively low. However, the lack of data on the average days on the market (DOM) makes it difficult to assess how quickly properties are rented out. If the DOM is short, it could indicate strong local demand despite the low percentage of renters. Conversely, if DOM is long, it suggests weak demand.
Conclusion:
If the FMR cannot cover the debt service, then investing in Section 8 properties in ZIP 37046 is not advisable. Given that the market rent far exceeds the FMR, landlords should consider focusing on market-rate rentals instead. The low percentage of renters indicates limited demand, but the actual rental speed (DOM) will provide clarity on whether there is enough demand to make Section 8 investment feasible. If the DOM is short, it might still be worth considering a Section 8 investment, but the financials must be carefully analyzed.
Data Sources: FMR data from HUD (2027). 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.