Location: Houston County, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 37181 presents a dynamic rental market, characterized by the interplay between federal guidelines and local conditions. The Fair Market Rent (FMR) set at $1270 for the fiscal year 2024 reflects the federal benchmark for affordability, while the actual market rent stands at $554, according to Census ACS data. This discrepancy suggests that the local rental market is significantly below the federal guideline, indicating either a surplus of rental units or lower-than-average income levels among residents.
The median home value of $325,075 provides insight into the overall property values within the area. However, without specific data on price-cut shares and days on market (DOM), it's challenging to pinpoint the exact balance between supply and demand in the rental sector. Nonetheless, the low market rent relative to the FMR implies that there may be ample rental supply, which could put downward pressure on rents.
The 18.7% renter share highlights another critical aspect of the housing landscape. With a relatively low percentage of renters compared to homeowners, this ZIP code may experience less immediate pressure for rental properties. However, this also means that a significant portion of the population is likely to be homeowners, which can influence long-term housing dynamics. As the homeowner base grows, it can lead to increased competition for rental units, especially if there is a rise in economic activity or population growth.
The snapshot of the ZIP 37181 market reveals a complex interplay between rental affordability and property values. Landlords and small-portfolio investors must consider these factors when evaluating their investment strategies. While the current market rent is lower than the FMR, suggesting potential for rental growth if demand increases, the high median home value points to a stable residential market. The relatively low renter share indicates a strong homeowner community, which could provide a solid foundation for future rental market stability.
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.