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
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 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$85,149
Housing Authorities Serving ZIP 37138
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). 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.