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 | $1,040 |
| 1 Bedroom | $1,070 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $345,849 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 37187 is situated in a predominantly suburban neighborhood characterized by a relatively small population of 7,988 residents. Only 16.7% of the inhabitants are renters, indicating a community where homeownership is the norm, with a median home value of $343,675. The area enjoys a high median income of $76,228, suggesting that most residents are financially stable and likely to manage their housing costs effectively.
Transitioning into the economic analysis of rental properties, the Fair Market Rent (FMR) for ZIP 37187 in fiscal year 2024 is set at $1270, significantly higher than the reported market rent of $974 based on Census ACS data. This discrepancy presents an opportunity for landlords and investors to potentially capitalize on the higher reimbursement rates offered by the Section 8 program while maintaining competitive market rents.
Considering the characteristics of ZIP 37187, it would be suitable for both hands-off voucher operators and hands-on value-add buyers. For those preferring a hands-off approach, the stability of the local economy and the modest percentage of renters suggest a low-risk environment where consistent returns can be expected without the need for extensive property management. On the other hand, value-add buyers might find potential in improving properties to command closer to the FMR rates, leveraging the higher Section 8 payments to enhance profitability.
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.