Section 8 Fair Market Rent (FMR) for ZIP 37133 - 2027

FY 2027 Fair Market Rent Rates

In ZIP code 37133, which falls within the Nashville-Davidson--Murfreesboro--Franklin County area in Tennessee, the Section 8 program operates under the Specific Area Fair Market Rent (SAFMR) system. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $1560. This figure is specific to this ZIP code and reflects the maximum amount that the Housing Choice Voucher Program will pay towards the rent of a two-bedroom unit.

The local market rent for a two-bedroom apartment in ZIP 37133 is currently unknown, as indicated by the N/A in the provided data. However, it's important to understand that the SAFMR does not necessarily reflect the actual market conditions but rather a federally determined threshold for rental assistance.

A landlord participating in the Section 8 program should be aware of how the voucher payment works. The voucher holder contributes a portion of their income towards the rent, typically around 30%. The remainder is covered by the housing authority up to the SAFMR limit. Additionally, there are utility allowances that can vary based on the size of the unit and the region.

To illustrate, if a tenant's income is $1,000 per month, they would contribute approximately $300 towards the rent. The housing authority would then cover the rest, up to the SAFMR limit of $1560. If the total rent exceeds $1560, the landlord is responsible for the difference. Conversely, if the total rent is below $1560, the landlord receives the full rent amount.

Utility allowances are also factored into the overall compensation package. These allowances help cover the cost of utilities such as electricity, gas, water, and sewer. The exact amount of these allowances varies and must be calculated according to the local housing authority's guidelines.

In ZIP 37133, landlords might find themselves in a situation where the SAFMR is lower than the local market rent, leading to a reimbursement gap. Alternatively, if the local market rent is lower than the SAFMR, landlords could see a surplus. Given the SAFMR of $1560 and the unknown local market rent, it's essential for landlords to compare this figure with the actual rents they charge to determine the financial impact.

Landlords should consult the local housing authority for precise utility allowances and to confirm the most recent SAFMR rates. Understanding these dynamics is crucial for making informed decisions about participating in the Section 8 program.

Data Sources: FMR data from HUD (2027).

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.