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 | $2,060 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,150 | $380,316 | 0.57% | F |
| 2BR | $2,340 | $750,270 | 0.31% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 37201 does not work in favor of landlords. The Fair Market Rent (FMR) set at $2360 for the fiscal year 2024 is significantly higher than the actual market rent indicated by ZORI, which stands at $1795. This discrepancy suggests that landlords might struggle to find tenants willing to pay the FMR, potentially leading to vacancies.
Acquisition in ZIP 37201 is not particularly affordable. The median home value is listed at $503,033, indicating a high barrier to entry for potential investors. The lack of data on days on market (DOM) and the fact that only 0.1% of listings require a price cut suggest that the housing market is stable but not especially favorable for quick acquisitions or significant discounts.
Tenant demand in ZIP 37201 is strong relative to the population size. With a total population of 1,467, and a renter share of 64.6%, there are approximately 950 renters. This high proportion of renters indicates a robust demand for rental properties, which could be beneficial for landlords who can offer competitive rents.
In summary, while there is a strong tenant demand in ZIP 37201, the rent math is unfavorable due to the disparity between FMR and actual market rent. Additionally, the high median home value makes acquisition challenging for new investors. Landlords must carefully manage their property costs to ensure profitability and attract tenants in this market.
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.