Location: Nashville-Davidson--Murfreesboro--Franklin, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
U.S. Census Bureau data (2024)
To integrate ZIP 37048 into a Section 8 portfolio strategy, consider it first and foremost as a cash-flow anchor. This designation is supported by the significant spread between the Fair Market Rent (FMR) set by HUD for the Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area for fiscal year 2024 and the current market rent. The FMR for ZIP 37048 is $1320, while the market rent stands at $1,148. This means that landlords participating in the Section 8 program can expect to receive a higher rental income compared to the average market rate, securing a steady and reliable cash flow.
The median home value in ZIP 37048 is $480,687, indicating a relatively affluent area where housing is expensive. Despite this, the median income of $100,446 suggests that many residents might still find traditional market rents unaffordable, making them ideal candidates for Section 8 housing assistance. This creates a stable demand for properties under the program, further reinforcing the cash-flow anchor role.
While the 0.3% price-cut share and the N/A-day Days on Market (DOM) suggest a competitive but not overly volatile rental market, these factors do not outweigh the benefits of the cash-flow anchor. The low price-cut share implies that landlords can maintain their asking prices without significant adjustments, and the undefined DOM could be due to quick sales or a lack of distressed properties, both positive indicators for maintaining consistent rental incomes.
The 11.9% renter share highlights that a significant portion of the population in ZIP 37048 relies on rental housing. However, this alone does not make it a diversifier; instead, it underscores the potential stability and predictability of the rental market, which aligns more closely with the concept of a cash-flow anchor. Diversification typically involves spreading investments across different types of assets or markets to mitigate risk, whereas ZIP 37048 offers a solid, dependable source of income through its participation in the Section 8 program.
In conclusion, ZIP 37048 serves best as a cash-flow anchor within a Section 8 portfolio strategy. The higher guaranteed rental income from the HUD FMR, combined with the area's high median home value and median income, ensures a stable and predictable cash flow for landlords and small-portfolio investors. This makes it an attractive option for those looking to secure a reliable income stream without the risks associated with highly volatile markets.
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.