Location: Hickman County, 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 | $1,200 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $251,931 | 0.52% | F |
| 3BR | $1,680 | $344,097 | 0.49% | F |
| 4BR | $2,040 | $443,423 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 37055, which encompasses Dickson, TN, Dickson County, and Hickman County, is characterized by a significant gap between the HUD Fair Market Rent (FMR) and the actual market rents. For fiscal year 2024, the HUD FMR stands at $1,270, while the market rent, as measured by ZORI (Zillow Observed Rent Index), is $1,418. This means that landlords can expect to cashflow marginally when renting units to voucher tenants at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in the area, which is $343,221. The rent-to-price ratio, calculated by dividing the annual market rent ($1,418 x 12 months) by the median home value, comes out to approximately 4.9%. This suggests that rental income represents a relatively modest portion of the overall property value, making it less attractive purely on rental yield alone.
The median Days on Market (DOM) for properties in this area is 38 days, indicating a moderately active real estate market. Additionally, the price-cut share of 0.3% suggests that sellers are rarely forced to reduce their asking prices, which can be indicative of a stable market where homes sell close to their initial listing values.
In terms of the broader rent-versus-buy dynamics, the short median DOM and low price-cut share suggest that the housing market is stable and potentially appreciating. However, these factors do not significantly impact the decision-making process for Section 8 investors, who are primarily concerned with cashflow and the ability to manage properties effectively under the voucher program.
The strongest investor angle in ZIP 37055 is likely stability. While cashflow is marginal due to the gap between HUD FMR and market rents, the stable housing market provides assurance that property values will remain consistent, reducing risk and offering a reliable long-term investment opportunity.
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.