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 | $1,970 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $2,860 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,050 | $296,748 | 0.69% | D |
| 2BR | $2,230 | $511,317 | 0.44% | F |
| 3BR | $2,860 | $738,122 | 0.39% | F |
| 4BR | $3,470 | $1,074,000 | 0.32% | F |
| 5BR | $4,025 | $1,494,918 | 0.27% | F |
U.S. Census Bureau data (2024)
Franklin, Tennessee, specifically the 37064 ZIP code, is characterized by its blend of historic charm and modern affluence, serving as the economic engine of Williamson County. The area is widely known for its thriving music industry presence, with major employers like the Nashville operations of Universal Music Group providing high-wage jobs that bolster the local economy. Beyond business, the city features a vibrant downtown district and is consistently recognized for its high quality of life, attracting families who value access to top-tier amenities and a well-maintained suburban environment.
Financially, Franklin presents a challenging spread for voucher landlords. The FY2026 Fair Market Rent for a 2-bedroom unit is $2,150, while the current market rent sits at $2,178, resulting in a razor-thin gap of only $28. Real estate values are substantial, with a median home value of $902,984 and a specific median 2BR sale price of $509,840. Inventory moves relatively slowly, with properties spending a median of 83 days on the market. Given these high acquisition costs, the minimal premium between market rate and HUD payment limits means standard Section 8 tenants do not generate significant cash-flow here.
Despite the tight rent margins, the tenant pool is exceptionally strong. The area boasts a median household income of $127,771, and although the renter share is just 22.9%, the demand for housing is driven by families seeking the excellent education provided by Williamson County Schools, which are rated among the best in the state. This high-income demographic and desirable school district create a stable environment where voucher holders are likely to be financially reliable, even if the rental yields are compressed by high property prices.
The Section 8 verdict for 37064 leans heavily toward appreciation and stability rather than immediate cash flow. With the $2,150 FMR lagging slightly behind the $2,178 market rate, investors should not rely on government payments to boost monthly margins. Instead, the strongest angle is betting on long-term asset appreciation in a high-growth corridor while utilizing the voucher program to minimize vacancy risk in a market where the median home value exceeds $900,000.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.