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 | $1,650 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $316,388 | 0.59% | F |
| 3BR | $2,400 | $403,358 | 0.6% | F |
| 4BR | $2,910 | $522,467 | 0.56% | F |
| 5BR | $3,376 | $607,108 | 0.56% | F |
U.S. Census Bureau data (2024)
Murfreesboro’s 37128 ZIP code, largely defined by the Blackman community, is a high-growth suburban sector characterized by sprawling new construction and a family-heavy demographic. The area has seen rapid expansion with the addition of The Avenue Murfreesboro, a major open-air shopping center that serves as a primary retail and employment hub for local residents. This neighborhood is largely car-dependent, featuring wide thoroughfares and a mix of master-planned subdivisions that appeal to commuters working in Nashville or at nearby educational institutions.
From a strictly numerical standpoint, the HUD SAFMR for a 2-bedroom unit in FY2024 sits at $1,740, while the estimated market rent (Zillow ZORI) is slightly lower at $1,707, resulting in a modest gap of data not available. For investors looking at acquisition, the median home value is $443,858, with 2-bedroom properties specifically trading at a median of $316,925. However, inventory moves relatively slowly here, with a median days on market of 76 days. Under the FY2026 Fair Market Rent ladder, rates climb to $1,800 for 2BR and $2,300 for 3BR units.
The tenant pool is supported by a median household income of $93,665, indicating a population that can generally afford stable housing, yet the 36.3% renter share confirms a substantial demand for rental units. Families are drawn to the area for the highly-rated Blackman schools, which act as a major retention anchor. While public transit options are limited, the proximity to major employers like Amazon and the local school district ensures a consistent flow of potential tenants who value the school district and suburban safety.
The Section 8 verdict for 37128 leans toward stability and appreciation rather than aggressive cashflow. Because the FY2024 payment standard ($1,740) only nominally clears the current market rent ($1,707), the immediate spread is tight. However, the upcoming FY2026 2BR FMR increase to $1,800 provides a clearer cushion. The strongest investor angle here is betting on long-term asset appreciation in a high-income school district, using Section 8 to minimize vacancy risk rather than to maximize immediate monthly premiums.
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.