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 | $1,140 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $245,712 | 0.53% | F |
| 3BR | $1,660 | $339,869 | 0.49% | F |
| 4BR | $2,010 | $459,341 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 37148, located in Portland, Tennessee, within Sumner County, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1270. This figure represents the maximum amount that a Section 8 Housing Choice Voucher will cover for rent in this particular ZIP code.
In contrast, the local market rent for a similar unit, as measured by ZORI (Zillow Observed Rent Index), stands at $1,475. This indicates that landlords in ZIP 37148 can expect to charge a higher rent than the SAFMR if they do not participate in the Section 8 program. However, landlords who choose to accept vouchers must understand the payment structure involved.
A voucher holder is required to contribute 30% of their adjusted income toward the rent. If we assume an average adjusted income of $1,600 per month, the tenant would pay approximately $480 towards the rent. The remaining amount is covered by the housing authority, up to the SAFMR limit of $1270. This means the housing authority would pay the difference between the tenant's contribution and the SAFMR, which in this case would be $790.
Additionally, the voucher includes allowances for utilities, which vary but typically range from $100 to $200 per month. These allowances are paid directly to the tenant and are not part of the housing authority's reimbursement to the landlord. Therefore, when calculating the total income from a Section 8 tenant, landlords should consider both the rent reimbursement and the utility allowance.
Given these specifics, landlords in ZIP 37148 accepting Section 8 vouchers for a two-bedroom unit would receive a total of $1270 per month, comprising the $480 tenant contribution and the $790 housing authority reimbursement. This leaves a gap of $205 between the SAFMR reimbursement and the local market rent ($1,475 - $1270).
In summary, landlords in ZIP 37148 participating in the Section 8 program for a two-bedroom unit will see a reimbursement gap of $205 compared to the local market rent. This economic reality should be considered when deciding whether to accept vouchers or seek market-rate tenants.
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.