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 | $1,620 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $280,083 | 0.66% | D |
| 3BR | $2,360 | $391,588 | 0.6% | D |
| 4BR | $2,860 | $498,190 | 0.57% | F |
| 5BR | $3,318 | $541,496 | 0.61% | D |
U.S. Census Bureau data (2024)
ZIP code 37076 is located in the eastern part of Nashville, TN, and represents a neighborhood with a significant rental market presence. The area has a total population of 39,017, with nearly half of the residents—48.1%—being renters. This indicates a strong demand for rental properties in the region. The median household income in the area stands at $74,663, reflecting a middle-class community where residents have sufficient financial means to support their living expenses. The median home value in ZIP 37076 is $404,776, which suggests that homeownership is relatively affordable compared to other parts of Nashville, yet still maintains a solid property value.
Moving into the economic specifics of renting, the Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,640. This is notably higher than the current market rent, measured by Zillow's Observed Rental Index (ZORI), which is at $1,484. This gap between the FMR and the actual market rent presents an opportunity for investors who can leverage the higher FMR rates through Section 8 housing vouchers. The difference implies that voucher holders can afford to pay more than what the market currently demands, offering a potential profit margin for landlords and investors.
Given these economic conditions, ZIP 37076 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR rate ensures steady, reliable income without the need for active property management. Meanwhile, value-add buyers can capitalize on the discrepancy between FMR and market rent by improving properties and charging closer to the FMR, thereby increasing their returns. The combination of a substantial rental market, moderate income levels, and a favorable FMR-to-market-rent ratio makes ZIP 37076 an attractive investment location for those interested in Section 8 properties.
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.