Location: Macon County, 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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $352,540 | 0.43% | F |
U.S. Census Bureau data (2024)
The potential risks for landlords investing in ZIP 37074 under the Section 8 program are significant and should be carefully considered. Tenant turnover is a notable concern, with the market rent at $846 falling far below the Fair Market Rent (FMR) of $1270 for FY 2024. This discrepancy suggests that tenants might prefer higher-paying opportunities outside the Section 8 program, leading to frequent moves and higher vacancy rates.
Vacancy exposure is another critical factor. The Days on Market (DOM) figure is not available, which makes it difficult to predict how long properties might remain vacant between tenancies. Given the lower market rent compared to the FMR, landlords could face extended periods without rental income, especially if they rely solely on Section 8 vouchers.
Deferred maintenance is also a risk due to the typical home value of $318,752 and a median income of $71,914. Landlords must be prepared to invest in property upkeep since tenants receiving Section 8 assistance may have limited resources to contribute to repairs and maintenance, leaving the financial burden on the landlord.
Despite these risks, there are mitigating factors that make ZIP 37074 a viable investment option. With 29.6% of residents being renters, there is a high concentration of potential voucher holders in the area. High renter density typically correlates with higher demand for housing subsidies, making it easier for landlords to find qualified tenants through the Section 8 program.
In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP 37074 are moderate. While tenant turnover, vacancy exposure, and deferred maintenance pose challenges, the high renter share offers a strong counterbalance by ensuring a steady pool of eligible tenants.
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.