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 | $1,150 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $410,634 | 0.41% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing property in ZIP code 37049 for Section 8 purposes must follow a structured decision-making process based on the following criteria:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 37049 in fiscal year 2024 is $1270. To determine if this FMR can cover the debt service on a property valued at $419,932, calculate the DSCR. Assuming a typical mortgage rate and term, the monthly debt service would be approximately $1,675. Since $1270 is less than the required $1,675, the answer is No. The FMR does not sufficiently cover the debt service, making it an unwise investment purely for Section 8 tenants.
Step 2: Market Rent Comparison
The Census American Community Survey (ACS) indicates that the market rent for ZIP 37049 is $1,107. This figure is below the FMR of $1270, suggesting that landlords could potentially charge slightly higher rents to non-Section 8 tenants. However, since the FMR cannot cover the debt service, this comparison alone is insufficient to justify a purchase.
Step 3: Tenant Demand Assessment
ZIP 37049 has 12.9% of its population as renters, but the Days on Market (DOM) is listed as N/A, which means there is no reliable data to assess how quickly properties are rented. Even with a known percentage of renters, the lack of DOM data makes it difficult to predict demand accurately. Therefore, the answer is It Depends.
To summarize, a landlord asking whether they should buy in ZIP 37049 for Section 8 should first ensure the FMR covers their debt service. With the FMR at $1270 and the necessary debt service at $1,675, the answer is a clear No. Although market rents are below the FMR, indicating potential for slightly higher rents for other tenants, the primary concern remains the inability to meet debt obligations solely through Section 8. Additionally, the tenant demand is partially unclear due to missing DOM data, further complicating the decision. For a definitive yes, the FMR would need to exceed the debt service, and the DOM data would need to indicate strong rental demand.
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.