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 | $1,670 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $325,255 | 0.58% | F |
| 3BR | $2,430 | $448,198 | 0.54% | F |
| 4BR | $2,940 | $638,580 | 0.46% | F |
| 5BR | $3,410 | $741,596 | 0.46% | F |
U.S. Census Bureau data (2024)
Hendersonville, Tennessee, located in Sumner County, is a premier suburban community positioned roughly 30 to 40 minutes north of Nashville along the shores of Old Hickory Lake. It has established itself as one of the most populous and inviting suburbs in the region, characterized by a family-friendly atmosphere and ample waterfront recreation. For landlords, the local economy is supported by a robust mix of healthcare and retail sectors, with major employers such as Sumner Regional Medical Center providing stable jobs for the area's residents.
Focusing on the financials for ZIP code 37075, the FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is set at $1,890, while current market rents (Zillow ZORI) trail slightly at $1,664. This creates a negative variance of $226 per month, meaning Section 8 payments currently exceed standard market rents by this margin, potentially offering a premium to voucher holders. The median home value sits at $515,376, with the median 2-bedroom sale price at $327,221. However, investors should note the slower pace of transactions, as the median days on market is currently 79 days.
Demand for rentals is underpinned by the area's strong economic fundamentals. With a median household income of $101,850 and a renter share of 26.5%, the tenant pool consists largely of middle-income families who value the community's amenities. The local schools, particularly those within the Beech cluster (Beech Elementary, T.W. Hunter Middle, Beech High), are significant draws for long-term residency. Additionally, the abundance of parks and lake access enhances the neighborhood's appeal, supporting consistent occupancy rates despite the longer selling times for single-family homes.
The Section 8 verdict for Hendersonville leans toward appreciation and stability over immediate cash flow. While the $226 gap between FMR and market rent is favorable, the high median home value ($515,376) suggests a price point that may compress yields. However, the high median income and desirable location near Old Hickory Lake indicate strong property value preservation and equity growth. This market is best suited for investors seeking quality assets in a high-demand suburb rather than those chasing maximum monthly spread.
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.