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 | $1,270 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $237,935 | 0.61% | D |
| 3BR | $1,850 | $347,188 | 0.53% | F |
| 4BR | $2,240 | $466,816 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 37172, which covers Springfield, TN, in Robertson County, operate based on the SAFMR (Small Area Fair Market Rent) for a 2-bedroom unit, set at $1340 for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local housing market conditions accurately.
The local market rent, measured by ZORI (Zillow Observed Rent Index), stands at $1635 for a similar 2-bedroom unit. This indicates that the SAFMR is approximately $295 lower than the market rent. When a landlord participates in the Section 8 program, the Housing Authority will reimburse the landlord up to the SAFMR amount, not the market rate.
A voucher holder's rent contribution is typically 30% of their adjusted income. For simplicity, let's assume an average adjusted income of $1500 per month, leading to a tenant contribution of $450. This figure does not include utilities, which are paid separately under the voucher program.
The utility allowance varies but is generally around $300 for a 2-bedroom apartment. Thus, the total reimbursement a landlord can expect from a voucher holder would be the sum of the tenant's rent contribution and the utility allowance. In this case, that would be $450 (tenant portion) + $300 (utility allowance) = $750.
To calculate the actual reimbursement for the landlord, subtract the tenant's portion plus utility allowance from the SAFMR. Therefore, the landlord receives $1340 (SAFMR) - $750 (tenant portion + utility allowance) = $590 as the government subsidy for a 2-bedroom unit in ZIP 37172.
This means there is a reimbursement gap between the market rent and the total amount received by the landlord from the voucher program. Specifically, the gap is $1635 (market rent) - $1340 (SAFMR) = $295. Additionally, the landlord must cover the difference between the SAFMR and the tenant's portion plus utility allowance, which is $1340 - $750 = $590.
In summary, a landlord in ZIP 37172 participating in Section 8 for a 2-bedroom unit receives a total of $590 from the government subsidy, while the tenant contributes $750 towards rent and utilities. This results in a reimbursement gap of $295 compared to the local market rent.
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.