Location: Nashville-Davidson--Murfreesboro--Franklin, TN | Metro: Clarksville, TN-KY HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 37171 reveals a significant gap between the Fair Market Rent (FMR) set by the government and the actual market rent observed in the area. The FMR for ZIP 37171 in fiscal year 2024 is $1270, while the market rent based on Census ACS data stands at $968. This means there is a $302 difference, representing a 31.2% gap between the two figures.
Given that the FMR exceeds the market rent, it becomes evident that voucher tenants can provide a yield play for landlords and small-portfolio investors. The higher subsidy rate ensures that landlords receive a rent payment closer to the FMR, which is above the typical market rate. This makes Section 8 properties more financially attractive than open-market rentals, especially considering that only 27.6% of residents in ZIP 37171 are renters, indicating a relatively smaller pool of potential tenants.
The median home value in ZIP 37171 is $410,186, and the median household income is $118,045. These figures suggest that the area is somewhat affluent, but the presence of voucher holders can still be beneficial due to the guaranteed income from the federal housing assistance program. The discrepancy between FMR and market rent also implies that landlords who accept Section 8 vouchers can potentially earn more per unit than those renting at market rates, without the risk of vacancy or non-payment.
However, it's important to note that accepting voucher tenants comes with its own set of requirements and regulations. Landlords must ensure that their properties meet certain standards and comply with HUD guidelines. Despite these considerations, the financial advantage of receiving a higher rent through the voucher program outweighs the costs, making it a strategic choice for maximizing returns in ZIP 37171.
Data Sources: FMR data from HUD (2027). 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.