Location: Moore 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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $212,065 | 0.56% | F |
| 3BR | $1,550 | $316,683 | 0.49% | F |
| 4BR | $1,870 | $376,905 | 0.5% | F |
| 5BR | $2,169 | $461,026 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering investing in ZIP 37160, Shelbyville, TN, might raise several concerns regarding the feasibility of the investment. Let's address these points directly using available data.
Objection 1: Will FMR $1560 (zip FY 2024) cover the mortgage on a $312,579 home?
The Fair Market Rent (FMR) for ZIP 37160 in fiscal year 2024 is set at $1560. This figure represents the average rent for a two-bedroom apartment, which is often used as a benchmark for rental properties. To determine if this will cover the mortgage on a $312,579 home, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly payment on such a home would be approximately $1670. Therefore, the FMR of $1560 does not fully cover the mortgage payment. However, it's important to note that the FMR is designed to ensure housing affordability and not necessarily to cover the entire mortgage burden.
Objection 2: Is there enough renter demand at 34.6%?
The renter occupancy rate of 34.6% suggests that a significant portion of the housing stock is rented out. While this percentage might seem low to some investors, it indicates a stable rental market. The demand for rental properties in ZIP 37160 is likely sufficient to support the existing rental units and potentially accommodate new ones. However, the data does not provide specific details on the growth or stability of renter demand over time, so cautious analysis of historical trends and local economic conditions is advised.
Objection 3: Will vouchers keep pace with $1,549 market rents?
The Housing Choice Voucher program, commonly known as Section 8, aims to assist low-income families, seniors, and people with disabilities in affording decent, safe, and sanitary housing. In ZIP 37160, the market rent for a two-bedroom unit is $1,549. Whether the voucher amounts will keep pace with this market rent depends on the local housing authority's policies and funding levels. The data does not specify the current average voucher amount in ZIP 37160, but historically, voucher amounts have been adjusted to reflect changes in the local rental market. Investors should monitor local adjustments to ensure continued alignment between voucher payments and market rents.
In conclusion, while the FMR of $1560 may not entirely cover the mortgage payment on a $312,579 home, the stable renter demand at 34.6% and potential adjustments in voucher amounts to match market rents of $1,549 suggest that ZIP 37160 can still present viable investment opportunities. Careful consideration of the broader economic context and future trends is essential for successful investment decisions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.