Section 8 Fair Market Rent (FMR) for ZIP 37138 - 2027

Location: Nashville-Davidson--Murfreesboro--Franklin, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area

Investment Score for ZIP 37138

Monthly Rent (2BR)

$1,850

Median Price (2BR)

$285,055

1% Rule

0.65%

Annual Yield

7.79%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,630
1 Bedroom	$1,700
2 Bedrooms	$1,850
3 Bedrooms	$2,380
4 Bedrooms	$2,880
5 Bedrooms	$3,341
6 Bedrooms	$3,742
7 Bedrooms	$4,041
8 Bedrooms	$4,243

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,850	$285,055	0.65%	D
3BR	$2,380	$375,143	0.63%	D
4BR	$2,880	$578,244	0.5%	F
5BR	$3,341	$746,030	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

22,575

Median Household Income

$85,149

Housing Units

10,248

Renter Percentage

22.8%

Occupancy Rate

94.7%

Renter Occupied

2,211

To determine if you should buy in ZIP 37138 (Nashville, TN) for Section 8 investments, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1,590 cover the debt service on a property valued at $388,970?

No: If the FMR does not sufficiently cover your debt service, investing in this area is not advisable. Debt service includes mortgage payments, insurance, taxes, and maintenance costs. For a property priced at $388,970, you need to ensure that the FMR can support these financial obligations.
Yes: Proceed to Step 2.

Step 2: Compare the Zillow Observed Rental Index (ZORI) of $2,039 to the FMR of $1,590.

ZORI is above FMR: This indicates that the market rent is higher than the FMR, which means there is potential for non-Section 8 tenants who might pay more. However, you must still evaluate the demand for Section 8 properties.
ZORI is at or near FMR: This suggests that the market rent closely aligns with the FMR, making it a viable option for Section 8 tenants. Continue to Step 3.
ZORI is below FMR: While unlikely given the data, if this were the case, it would imply that the market is undervalued relative to the FMR. This scenario could be advantageous for Section 8 investments, but again, demand must be considered.

Step 3: Assess the rental demand with 22.8% of residents being renters and an average Days on Market (DOM) of 44 days.

It depends: The 22.8% of renters and a DOM of 44 days indicate moderate demand. A DOM of 44 days is relatively short, suggesting that properties are rented out quickly once listed. However, the percentage of renters is only moderate. To make a final decision, consider the number of Section 8 vouchers available in the area, the competition from other landlords, and the specific needs of your target tenant demographic. Additionally, look into the vacancy rate and whether there is a trend of increasing or decreasing demand for rentals.

In summary, if the FMR of $1,590 does not cover your debt service on a property costing $388,970, do not invest in ZIP 37138 for Section 8 purposes. If the ZORI of $2,039 is significantly above the FMR, focus on finding non-Section 8 tenants willing to pay higher rents. If ZORI is close to FMR and combined with a DOM of 44 days, the area presents a reasonable opportunity for Section 8 investments, but the final decision should factor in additional local market conditions and trends.

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.