Location: Bedford County, 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 | $1,510 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,700 |
| 5 Bedrooms | $3,132 |
| 6 Bedrooms | $3,508 |
| 7 Bedrooms | $3,789 |
| 8 Bedrooms | $3,978 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,210 | $439,897 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP code 37153, located in Bedford County, Tennessee, offers a strategic fit for a Section 8 portfolio. The area's median Fair Market Rent (FMR) for FY 2024 is set at $1,630 for a one-bedroom unit, while the market rent is approximately $1,375. This indicates that the FMR exceeds the market rent by $255, creating a positive spread for landlords participating in the Section 8 program.
The median home value in ZIP 37153 stands at $478,822, which is relatively high for the region but still provides opportunities for rental income. Landlords can leverage this by focusing on the rental market rather than homeownership, ensuring steady cash flow. The positive spread between the FMR and market rent makes ZIP 37153 a strong candidate for a cash-flow anchor within a Section 8 portfolio.
A cash-flow anchor is essential for stabilizing a real estate investment portfolio, especially when dealing with government-assisted housing programs. In ZIP 37153, the $255 difference between the FMR and market rent ensures that landlords receive above-market rates, securing reliable income. This is particularly advantageous given the 0.2% price-cut share and the fact that days on market (DOM) are not a significant concern, indicating a stable and demand-driven rental market.
The 14.2% renter share and median income of $99,143 suggest a diverse economic profile, making ZIP 37153 a suitable location for a diversified portfolio. However, the primary focus should be on the cash-flow anchor aspect due to the favorable spread between FMR and market rents. This spread guarantees a consistent income stream, crucial for long-term stability and growth in a Section 8 portfolio.
To summarize, ZIP 37153 serves best as a cash-flow anchor in a Section 8 portfolio strategy. The higher FMR compared to the local market rent ensures a positive cash flow, making it an ideal choice for landlords and small-portfolio investors looking to stabilize their income streams.
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.