Location: Macon 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 | $1,080 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $219,705 | 0.54% | F |
| 3BR | $1,530 | $318,252 | 0.48% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 37186, located in Westmoreland, Tennessee, hinges on a balance between yield and stability. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 stands at $1,270, which is notably higher than the market rent of $988. This suggests that properties receiving Section 8 subsidies could command a premium over typical market rates, indicating a potentially high-yield environment.
To further assess yield, consider the average home value of $289,770. The disparity between the FMR and the market rent implies that landlords who can secure Section 8 tenants will see an above-average return on their investment relative to the property's value. However, this also means that the market rent is significantly lower than the subsidized rate, which could indicate a limited pool of eligible tenants.
Moving to the stability axis, ZIP 37186 has a substantial portion of its population renting—29.4%. While this figure alone does not provide a complete picture of market stability, it does suggest a reasonable demand for rental housing. The median household income of $59,545 provides insight into the financial health of potential tenants, though without data on Day on Market (DOM), it is challenging to gauge how quickly properties might be rented out or the likelihood of vacancy.
Based on these figures, ZIP 37186 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The significant difference between the FMR and the market rent points to a high-yield opportunity, but the relatively low percentage of the population renting and the lack of DOM data hint at potential challenges in maintaining consistent occupancy. Landlords should expect a reliable cash flow if they can consistently attract Section 8 tenants, but they must also be prepared for the possibility of market fluctuations affecting non-subsidized rentals.
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.