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 | $1,250 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $374,530 | 0.49% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 37141, located in the Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area, reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $1480 for FY 2024, which is significantly higher than the market rent reported by the Census ACS at $1,188. This means that voucher tenants will generally cashflow positively at the FMR level, providing a substantial buffer against market rent fluctuations.
To further understand the investment potential, consider the median home value in the area, which stands at $361,427. Using the HUD FMR of $1480, we can calculate a rent-to-price ratio of approximately 0.41%. This low ratio suggests that rental income represents a relatively small portion of the total property value, indicating that the area is more suited for buy-and-hold strategies rather than flipping properties. However, it also highlights the potential for strong appreciation in property values over time, given the current low rent-to-price ratio.
The lack of data on median Days on Market (DOM) and the percentage of homes experiencing price cuts does not significantly impact the analysis, as the primary focus for Section 8 investors should be on stable rental income rather than short-term price volatility. Nonetheless, these metrics would provide additional insight into the local real estate market's liquidity and seller behavior.
In conclusion, the strongest investor angle in ZIP 37141 is likely appreciation, due to the favorable rent-to-price ratio and the positive cashflow potential from voucher tenants. This makes the area attractive for long-term investments focused on capital growth and steady rental income.
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.