Location: Marshall County, TN | Metro: Maury County, 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 | $1,020 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $195,192 | 0.63% | D |
| 3BR | $1,540 | $301,736 | 0.51% | F |
| 4BR | $1,730 | $393,184 | 0.44% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 37091, Lewisburg, TN, might raise several concerns regarding the feasibility of investing in the area through the Section 8 program. Let's address these objections head-on.
Objection 1: Will Fair Market Rent (FMR) of $1110 (for zip FY 2024) cover the mortgage on a $296,551 home?
The FMR of $1110 is the maximum amount that landlords can charge tenants participating in the Section 8 housing choice voucher program. However, it does not directly correlate with the mortgage payments on a home valued at $296,551. To accurately assess whether the FMR will cover the mortgage, one must consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage with an interest rate around 5%, the monthly payment on a $296,551 home would be approximately $1570. This means that the FMR alone would not cover the mortgage payment. Investors should factor in other income sources or consider adjusting their investment criteria to match the FMR more closely.
Objection 2: Is there enough renter demand at 27.0%?
The rental vacancy rate in Lewisburg, TN, is 27.0%. This percentage indicates a relatively high vacancy rate, which could be concerning for potential investors. A higher vacancy rate suggests that there might be fewer renters actively seeking housing, potentially leading to periods when properties are unoccupied. However, it is important to note that the vacancy rate does not provide a complete picture of the demand. Other factors such as population growth, job opportunities, and local economic conditions also play significant roles. The data provided does not offer insights into these additional factors, but a thorough analysis of Lewisburg's economic landscape would help clarify the overall rental market dynamics.
Objection 3: Will vouchers keep pace with market rents of $887?
The average market rent of $887 is lower than the FMR of $1110, suggesting that the voucher amounts are sufficient to cover the typical rent in the area. However, the question remains whether the voucher program will adjust to keep up with any future increases in market rents. The Housing Choice Voucher Program typically reviews and adjusts voucher amounts periodically based on changes in the FMR. For now, the gap between the market rent and the FMR indicates that vouchers are adequate, but investors should monitor any changes in the FMR and local rent trends to ensure continued alignment.
In conclusion, while ZIP 37091 presents some challenges, particularly with the high vacancy rate and the need for additional income sources to cover mortgage payments, the current data shows that vouchers are sufficient to cover market rents. A deeper dive into local economic indicators and trends would further inform investment decisions.
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.