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 | $2,380 |
| 1 Bedroom | $2,480 |
| 2 Bedrooms | $2,700 |
| 3 Bedrooms | $3,470 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,470 | $557,375 | 0.62% | D |
| 4BR | $4,200 | $879,549 | 0.48% | F |
| 5BR | $4,872 | $1,106,678 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP code 37135 is situated within the Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $2,430. Comparatively, the average FMR for ZIP codes in this metro area is lower at $2,783. This indicates that 37135 is slightly below the market rent for the broader Nashville region.
The median home value in 37135 stands at $819,035. This figure is notably higher than what might be expected for a ZIP code with a below-average market rent, suggesting a mixed economic profile where property values are high but rental costs are somewhat controlled.
The renter share in 37135 is 7.4%, which is relatively low compared to other ZIP codes within the Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area. Typically, a higher renter share could indicate a larger presence of Section 8 eligible tenants, but in this case, the lower share means fewer potential Section 8 participants relative to the metro area average.
Given these figures, ZIP 37135 can be considered a mid-tier neighborhood within the metro. The combination of below-average market rents and above-average home values suggests a balance between affordability and desirability. However, the low renter share implies it is not a primary target for Section 8 incentives, as typically a higher renter share would be associated with such areas.
Landlords and small-portfolio investors should consider these factors when evaluating the ZIP code. While it offers opportunities for rental income at rates slightly below the market average, the high property values mean that the cost of entry into this market is also elevated. It's not a value pocket due to the high home values, nor is it a premium sub-market because of the below-average renter share and market rents.
In summary, 37135 presents a moderate investment opportunity within the Nashville region, balancing between manageable rental costs and competitive property values without the strong signal of being a Section 8 sweet spot.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.