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 | $1,490 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $350,366 | 0.48% | F |
| 3BR | $2,170 | $410,579 | 0.53% | F |
| 4BR | $2,630 | $618,000 | 0.43% | F |
| 5BR | $3,051 | $835,347 | 0.37% | F |
U.S. Census Bureau data (2024)
Gallatin 37066 is a growing lakeside hub within the Nashville metro area, characterized by a blend of historic downtown charm and expanding suburban developments. The city sits directly on Old Hickory Lake, offering significant recreational draw, and has evolved into a more standalone employment center rather than just a bedroom community. A major economic anchor in the area is the Sumner Regional Medical Center, which provides a stable base of local employment and supports the surrounding service economy, reinforcing the neighborhood’s self-sustaining nature.
From a strictly numerical perspective, the market shows a distinct split between rental income and asset value. The HUD FY2026 2BR Fair Market Rent (FMR) is set at $1,550, while current market rents (Zillow ZORI) sit at $1,662, creating a relatively narrow gap of $112. For investors, this means Section 8 tenants generally cover the majority of market rate. Median home values are notably high at $440,265, with median 2BR specific sales at $347,005. However, velocity is a concern, as the median days on market lingers at 93 days, suggesting slower liquidity compared to hotter core Nashville markets.
The tenant pool is anchored by solid fundamentals, with a median household income of $81,614 and a renter share of 36.2%. This income level exceeds that of many surrounding suburbs, implying a population that can afford higher rents and potentially contributes to a voucher program that is well-funded and less prone to payment delays. Demand is further supported by the area's highly rated Sumner County Schools and the retail amenities along Nashville Pike, which attract families looking for stability outside the urban core.
The Section 8 verdict for Gallatin 37066 leans toward stability and appreciation rather than aggressive cash flow. The $112 gap between FMR and market rent is manageable, but the high entry price of $440,265 relative to the rent caps yields lower immediate yields. The strongest investor angle here is betting on long-term asset appreciation in a high-income lakeside community, using the reliable Section 8 payments to offset the slower 93-day turnover period while equity builds in a desirable Nashville exurb.
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.