Section 8 Fair Market Rent (FMR) for ZIP 37174 - 2027

Investment Score for ZIP 37174

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,870
1 Bedroom	$1,930
2 Bedrooms	$2,120
3 Bedrooms	$2,710
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,120	$324,426	0.65%	D
3BR	$2,710	$449,964	0.6%	D
4BR	$3,280	$615,782	0.53%	F
5BR	$3,805	$758,389	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 37174 (Spring Hill, TN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 37174 is set by HUD for 2026, with specific rates for different unit sizes. For a two-bedroom unit, the FMR is $2,050 per month. This amount represents 23.4% of the median household income in Spring Hill, which is $105,181. The FMRs for other unit types are as follows: - 0BR: $1,760 - 1BR: $1,810 - 3BR: $2,610 - 4BR: $3,070 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. Zillow reports that the median price for a two-bedroom home in Spring Hill is $325,131. Given the price-to-FMR ratio of 13.2x, it suggests that the average rent for a two-bedroom unit is approximately $27,260.40 annually, or $2,271.70 monthly. This is significantly higher than the FMR of $2,050, indicating that many rental units in Spring Hill are out of reach for Section 8 voucher holders. The constraints for voucher holders include limited options, especially for larger units, as they would have to find properties that do not exceed their voucher limits. #### Affordability & Renter Profile Spring Hill has a population of 53,900, with 25.9% of residents being renters. The occupancy rate stands at 96.3%, suggesting a robust demand for housing. With a median household income of $105,181, the area is relatively affluent, and the high price-to-FMR ratio indicates that the rental market is tight. Most renters in Spring Hill likely fall into the middle to upper-middle class category, as the cost of living is quite high relative to the FMR. The 25.9% renter percentage also implies that there is a significant but not overwhelming number of renters, making it a competitive market for those seeking affordable housing. #### Investor Angle From an investor perspective, the ZIP code 37174 presents a mixed picture. The actual rents are much higher than the FMRs, which means that properties rented at FMR levels would be cash-flow positive. However, the high price-to-FMR ratio indicates that purchasing properties at market value would not align well with the FMR guidelines. To achieve positive cash flow, investors would need to purchase properties below market value or negotiate with landlords to accept lower rents. Given the median household income and the high actual rents, the investment grade for this ZIP code is moderate to low for Section 8-focused investors. The primary challenge lies in finding properties that can be rented at or below the FMR without significant financial loss. Investors should focus on units that are priced closer to the FMR and ensure that they can manage the property efficiently to cover operating costs. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should seek out properties that are priced closer to the FMR. For instance, a two-bedroom unit renting at $2,050 per month would be ideal for Section 8 tenants. This could involve looking for older or less desirable properties that are still safe and habitable but priced lower due to their condition or location. 2. **Negotiate with Landlords**: If purchasing properties at market value, investors might consider negotiating with existing landlords to accept lower rents for Section 8 tenants. This would require a detailed understanding of the local market and the willingness to work closely with landlords to ensure compliance with FMR guidelines. 3. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units like one-bedroom apartments might offer better opportunities for positive cash flow. The FMR for a one-bedroom unit is $1,810, which is still significantly lower than the median market rent. Investing in smaller units could provide a buffer against the high costs associated with larger units. #### Bottom Line For Section 8-focused investors, the ZIP code 37174 (Spring Hill, TN) presents a challenging environment due to the high price-to-FMR ratio and limited availability of properties within FMR guidelines. While there are opportunities to achieve positive cash flow by targeting lower-rent properties or focusing on smaller units, the overall recommendation is to **skip** this ZIP code unless you can secure properties at a substantial discount or are willing to take on the additional challenges of managing properties in a high-cost area. ### Summary Spring Hill, TN, is a high-income area with a tight rental market. The FMRs are far below the actual market rents, making it difficult for Section 8 voucher holders to find suitable housing. Investors should carefully evaluate the potential for positive cash flow and consider focusing on smaller units or negotiating with landlords to secure properties within FMR guidelines. Despite these challenges, the recommendation for Section 8-focused investors is to skip this ZIP code unless they can navigate the high costs effectively.

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.