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 | $1,680 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $296,742 | 0.64% | D |
| 3BR | $2,450 | $402,764 | 0.61% | D |
| 4BR | $2,970 | $559,680 | 0.53% | F |
| 5BR | $3,445 | $641,170 | 0.54% | F |
U.S. Census Bureau data (2024)
Murfreesboro’s 37129 zip code is one of the region’s most desirable suburban corridors, characterized by sprawling master-planned communities and a high quality of life. The area is defined by strong family appeal, anchored by the presence of Middle Tennessee State University to the north and major employers like Amazon’s massive fulfillment center, which provides a steady base of local employment. Neighborhoods here typically feature newer construction, ample green space, and convenient access to Medical Center Parkway, making it a prime draw for households seeking bedroom-community living near Nashville.
From a valuation standpoint, the market commands a premium compared to the HUD baseline. The FY2026 Fair Market Rent for a 2-bedroom unit is set at $1,800, yet current market rents (Zillow ZORI) sit higher at $1,831. While the market rent exceeds the voucher standard by only $31, the spread for a 4-bedroom unit is tighter: the FMR is $2,800 against market demand that may push higher. Investors should note the median home value is $444,293, with a median 2BR sale price of $289,941. Properties here move deliberately, sitting on the market for a median of 83 days. With the 2BR voucher covering nearly all of market rent, voucher tenants can reasonably cash-flow, though the delta is slim.
The tenant pool is robust, driven by a renter share of 34.9% and a median household income of $91,259. This income level is significantly higher than the typical Section 8 demographic, suggesting that the private market is competitive but also that the area attracts stable, working-class renters. Families are drawn to the highly-rated schools in the Rutherford County district and the low crime rates typical of the suburb’s master-planned developments. These amenities help maintain occupancy and reduce vacancy risk, even as the broader Nashville Metro area sees rental fluctuations.
The Section 8 verdict for 37129 leans toward stability and appreciation over aggressive cash-flow. The tight gap between the $1,800 FMR and market rent means investors cannot rely on excessive premiums, but the high median income and institutional employers like Amazon suggest long-term tenant reliability. The area is best suited for investors seeking property value preservation in a high-demand suburban enclave rather than high-yield cash cow strategies.
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.