Location: Warren 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 | $1,500 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $231,534 | 0.51% | F |
| 3BR | $1,500 | $301,477 | 0.5% | F |
| 4BR | $1,820 | $424,284 | 0.43% | F |
U.S. Census Bureau data (2024)
Smithville, Tennessee, located in ZIP code 37166, is a modest-sized community with a total population of 15,731. The area has a notable rental market, with 28.2% of residents being renters. The median household income in Smithville is $52,797, which is indicative of a middle-class neighborhood. The median home value stands at $286,295, reflecting a stable housing market.
From an investment perspective, the rent economics in Smithville present a favorable scenario for landlords and small-portfolio investors. According to the Census Bureau's American Community Survey (ACS), the average market rent in the area is $813. However, the Fair Market Rent (FMR) for ZIP code 37166, as set by HUD for fiscal year 2024, is $1270. This substantial gap between the market rent and the FMR suggests that properties participating in the Section 8 program can command higher rents compared to the local market average.
The opportunity in Smithville caters well to both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the consistent demand for affordable housing and the guaranteed income from the Section 8 program make it a reliable investment option. On the other hand, value-add buyers can benefit from the potential to renovate and improve properties, thereby increasing their market value and attracting tenants willing to pay closer to the FMR.
In conclusion, ZIP code 37166 in Smithville, TN, offers a balanced environment for real estate investments, particularly those focused on the Section 8 program. With a solid tenant base and significant upside in rental pricing, the area presents a compelling opportunity for both passive and active investors alike.
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.