Location: Nashville-Davidson--Murfreesboro--Franklin, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
The analysis for ZIP 37056, centered around Dickson, TN, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. The FMR for FY 2024 is set at $1270. However, the market rents listed on Trulia for nearby areas suggest that the actual market rate is higher, with some apartments priced at over $3,500 per month.
This gap means that landlords who accept Section 8 vouchers will be renting their properties at a rate below the open-market level. Specifically, the difference between the FMR and the average market rent is approximately $2230, or 175%. This discrepancy can result in a lower net yield compared to non-voucher tenants paying market rates.
In Dickson, TN, the percentage of renters is unknown, but the median home value and median income are also unspecified. Given the substantial gap between FMR and market rents, landlords should consider the potential impact on their investment yields. While accepting voucher tenants can provide a steady stream of income and reduce vacancy rates, it comes at the cost of renting below market levels, which can affect overall profitability.
Data Sources: FMR data from HUD (2027).
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.