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 | $1,200 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $284,208 | 0.48% | F |
| 3BR | $1,750 | $394,304 | 0.44% | F |
| 4BR | $2,120 | $550,679 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 37073 in Greenbrier, Tennessee, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $1360 for fiscal year 2024, exceeds the Census ACS reported market rent of $1140. This creates a gap of $220 per month, or approximately 19%, which is significant for landlords and small-portfolio investors.
Given that the FMR is higher than the market rent, it means that landlords who accept Section 8 vouchers can charge closer to the FMR, thus making this a yield play. In other words, voucher tenants allow landlords to achieve a rental rate that is above the current market average, thereby increasing their potential earnings. This is particularly advantageous in an environment where only 15.8% of residents are renters, suggesting a relatively low supply of rental units compared to the number of homeowners.
The median home value in Greenbrier, TN, stands at $389,513, indicating that the majority of the population owns homes rather than renting. Additionally, the median household income is $89,065, which further supports the notion that many residents can afford to purchase homes. However, for those who do rent, especially those relying on Section 8 vouchers, the opportunity to secure rental properties at rates closer to the FMR presents a clear financial benefit for landlords.
In summary, the gap between the FMR and the market rent in ZIP 37073 makes accepting Section 8 vouchers a strategic move for landlords aiming to maximize their rental yields. With a lower percentage of renters and a higher median home value, the demand for affordable rental units supported by vouchers can be met at rates that are more favorable than the open-market average, translating into higher profits.
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.