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 | $2,000 |
| 1 Bedroom | $2,080 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,530 |
| 5 Bedrooms | $4,095 |
| 6 Bedrooms | $4,586 |
| 7 Bedrooms | $4,953 |
| 8 Bedrooms | $5,201 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $444,894 | 0.51% | F |
| 3BR | $2,910 | $689,630 | 0.42% | F |
| 4BR | $3,530 | $1,032,539 | 0.34% | F |
| 5BR | $4,095 | $1,290,473 | 0.32% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $2340 for ZIP code 37067 in Franklin, TN, landlords can expect to align their rental pricing with HUD standards for fiscal year 2024. The actual market rent, known as ZORI, stands at $1921, indicating a competitive landscape where properties priced below the FMR can attract tenants quickly. The median home value in the area is $961,143, suggesting a robust real estate market that supports high property values. In Franklin, 48.3% of residents are renters, which means there's a substantial demand for rental properties. However, the median income of $111,759 implies that many residents can afford to buy rather than rent, potentially affecting the rental market dynamics.
The average Days on Market (DOM) for listings is 32 days, which is relatively short and indicates a brisk pace in the real estate transactions. This quick turnover can be beneficial for landlords looking to minimize vacancy periods. On the other hand, only 0.2% of homes are listed with a price cut, suggesting that homes in Franklin, TN, are generally valued correctly from the outset, reducing the risk of overpricing for both buyers and sellers.
In summary, Franklin, TN, presents a favorable environment for real estate investment, especially for those considering rental properties. The disparity between the FMR and ZORI offers opportunities for landlords to set competitive rates, while the strong median income supports the ability of residents to pay higher rents. Given these factors, Franklin, TN, remains a solid choice for Section 8 participation, with a positive outlook for maintaining occupancy levels and managing costs effectively.
Verdict: Franklin, TN, is a suitable market for Section 8 participation, supported by a robust economy and manageable renter share.
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.