Section 8 Fair Market Rent (FMR) for ZIP 37202 - 2027
Location: Nashville-Davidson--Murfreesboro--Franklin, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,620 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
To determine if you should buy in ZIP code 37202 for Section 8, follow this decision tree:
- Does the Fair Market Rent (FMR) of $1650 cover debt service on your property?
- Yes: The FMR of $1650 is sufficient to cover the debt service on a property in ZIP 37202. Proceed to the next question.
- No: Do not invest in this area for Section 8 properties as the FMR will not sufficiently cover your debt service.
- Is the market rent above, at, or below the FMR of $1650?
- Above: The market rent is higher than the FMR, indicating that you can potentially earn more by renting to non-Section 8 tenants. However, if your goal is to cater to Section 8 tenants, ensure that the property's cost aligns with the FMR.
- At: Market rent matches the FMR, making it a viable option for Section 8 properties. Continue to the next step.
- Below: Market rent is lower than the FMR, which might suggest an opportunity to offer affordable housing. However, this also indicates that the rental market is not robust and may affect your ability to attract non-Section 8 tenants.
- Are the percentage of renters and the days on market (DOM) sufficient to meet your demand expectations?
- N/A% renters and N/A-day DOM indicate insufficient data to make a clear decision on demand. You must gather more specific information on these metrics.
- If the percentage of renters is high and the DOM is low, there is strong demand for rentals in this area, making it a good investment for Section 8 properties.
- If the percentage of renters is low and the DOM is high, the demand for rentals is weak, and investing in this area for Section 8 properties may not be advisable.
The decision to invest in ZIP 37202 for Section 8 properties hinges on the answers to these questions. With the FMR of $1650, you have a baseline figure to work with. Ensure that the market conditions and demand support your investment strategy before proceeding.
Data Sources: FMR data from HUD (2027).
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.