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 | $1,380 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $260,075 | 0.6% | F |
| 3BR | $2,000 | $361,472 | 0.55% | F |
| 4BR | $2,430 | $526,586 | 0.46% | F |
| 5BR | $2,819 | $646,255 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 37130 in Murfreesboro, TN, reveals a market that offers a balance between yield and stability, making it neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone.
On the yield axis, the Fair Market Rent (FMR) for 2024 is set at $1,360, which is below the market rent of $1,545. This indicates a potential for higher rental income compared to the FMR, suggesting a moderate yield opportunity. However, the median home value of $371,416 implies that the capital investment required for properties in this area is relatively high, which can affect the overall return on investment (ROI).
Moving to the stability axis, the ZIP code shows a substantial portion of renters at 50.2%, which is a positive sign for landlords and small-portfolio investors looking for consistent demand. The Days on Market (DOM) for rentals stands at 38 days, indicating a reasonably quick turnaround time for finding tenants, although not exceptionally short. Additionally, the median household income of $62,706 suggests that there is enough financial capacity among residents to support stable rental payments.
Given these figures, ZIP 37130 leans towards a steady-cashflow zone rather than a high-risk/high-reward flip-style market. The strong rental demand coupled with moderate rental yields points towards a market where long-term investments are likely to generate reliable returns. While the median home value is high, the combination of decent rental rates and a significant percentage of renters supports a stable occupancy rate and predictable cash flow.
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.