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 | $1,330 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $370,455 | 0.41% | F |
| 3BR | $1,940 | $470,617 | 0.41% | F |
U.S. Census Bureau data (2024)
Investors considering ZIP 37143 in Tennessee should carefully evaluate the financial metrics associated with Section 8 properties. A common objection is whether the Fair Market Rent (FMR) of $1450 for the fiscal year 2024 will sufficiently cover the mortgage on a $450,001 home. While FMR is an important benchmark, it does not directly correlate with mortgage payments. The actual mortgage coverage depends on interest rates and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $450,001 home would be approximately $2,366. This means that the FMR of $1450 falls short by nearly $900 per month, indicating that additional income sources or a higher rental rate might be necessary to achieve profitability.
Another concern is the level of renter demand, which stands at 9.0%. This percentage suggests that there is a moderate level of interest among potential renters. However, it's critical to understand that this demand figure alone does not guarantee occupancy. The competition from other rental properties and the overall economic conditions in ZIP 37143 play significant roles. To better assess demand, investors should look into the vacancy rates and the number of available rental units in the area. If the vacancy rate is high, even a 9.0% demand might not translate into steady occupancy. Conversely, if the vacancy rate is low and there is a shortage of affordable housing, this demand could be quite robust.
The final objection pertains to whether voucher payments will keep pace with the market rents of $1,321. The FMR of $1450 is higher than the market rent, suggesting that voucher holders can potentially afford units closer to the FMR. However, voucher programs often have caps and eligibility requirements that can limit their utility. In ZIP 37143, if the majority of voucher recipients are capped below $1321, then market rents might not be fully covered. Investors need to consider the local policies regarding voucher usage and the historical trends of how well voucher amounts have kept up with inflation and rising rents. Without specific data on voucher caps and recent adjustments, it's challenging to definitively state how well voucher payments will align with market rents.
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.