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 | $2,010 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,550 |
| 5 Bedrooms | $4,118 |
| 6 Bedrooms | $4,612 |
| 7 Bedrooms | $4,981 |
| 8 Bedrooms | $5,230 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,280 | $409,135 | 0.56% | F |
| 3BR | $2,930 | $499,011 | 0.59% | F |
| 4BR | $3,550 | $638,746 | 0.56% | F |
| 5BR | $4,118 | $723,386 | 0.57% | F |
U.S. Census Bureau data (2024)
Mount Juliet, ZIP code 37122, serves as a rapidly expanding suburb within the Nashville metropolitan area, often marketed for its blend of residential comfort and commercial accessibility. The community is characterized by a mix of newer master-planned developments and established neighborhoods, attracting families seeking a quieter alternative to downtown Nashville. A key economic driver in the area is the massive Providence Marketplace, an open-air shopping center that not only provides retail options but also acts as a significant employment hub for local residents. This commercial base supports the area's reputation for self-sufficiency while maintaining proximity to Nashville’s job market.
From a valuation perspective, the data presents a challenging landscape for Section 8 investors. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is listed at $2,200, while the current market rent sits at $2,057. This results in a negative gap of data not available for market-to-FMR premiums, but notably, the market rent trails the FMR by $143. With a median home value of $571,579 and a median 2BR sale price of $405,020, acquisition costs are substantial. Furthermore, properties are sitting on the market for a median of 102 days, suggesting that achieving immediate cash flow is difficult given the high asset prices relative to the local rental ceiling.
The local demographics show a population of 68,492 with a median household income of $112,967, which is significantly higher than typical voucher-holder thresholds. Consequently, only 20.4% of households are renters, limiting the sheer volume of traditional tenant demand compared to denser urban cores. Families are drawn to the area’s highly rated public schools, such as those in the Wilson County School District, and the abundance of parks. However, the lack of robust public transit means tenants require private vehicles, which can be a barrier for some voucher holders despite the area's amenity richness.
The Section 8 verdict for Mount Juliet 37122 leans toward an appreciation play rather than immediate cash flow. The negative spread between the $2,200 FMR and the $2,057 market rent indicates that raising rents to HUD limits is unlikely without risking long vacancies in a high-income, low-renter-share environment. Investors should target this area for long-term capital growth driven by the high median home values and regional popularity, accepting that rental yields may be compressed in the short term.
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.