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 | $1,890 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,330 |
| 5 Bedrooms | $3,863 |
| 6 Bedrooms | $4,327 |
| 7 Bedrooms | $4,673 |
| 8 Bedrooms | $4,907 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,960 | $409,812 | 0.48% | F |
| 2BR | $2,140 | $573,792 | 0.37% | F |
| 3BR | $2,750 | $757,181 | 0.36% | F |
| 4BR | $3,330 | $946,317 | 0.35% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 37203 in Nashville, TN, hinges on a careful analysis of both yield and stability metrics. On the yield axis, the Fair Market Rent (FMR) for ZIP 37203 in fiscal year 2024 is set at $1770, while the average market rent stands at $2,064. This suggests that there is a slight premium in the market over the FMR, indicating potential for higher yields when properties are rented out at market rates. Additionally, the median home value of $623,334 provides a substantial asset base, which can be leveraged to generate significant cash flow through rental income.
Moving to the stability axis, the data points to a relatively stable environment. With 80.7% of residents being renters, there is a strong demand for rental housing, reducing the risk of vacancies. The days on market (DOM) figure of 42 days further supports this stability, as it indicates a quick turnover of rental units, suggesting a healthy rental market. Furthermore, the average household income of $71,281 is a positive indicator for the ability of tenants to pay rent consistently.
Given these figures, ZIP 37203 does not fit the profile of a high-yield/low-stability flip-style market. Instead, it leans towards being a steady-cashflow zone. The combination of a strong rental market, indicated by the high percentage of renters and low DOM, along with a decent income level, creates an environment where long-term investments are likely to provide consistent returns. While the yield is respectable, driven by the market rent exceeding the FMR, the stability factors mitigate risks typically associated with volatile markets.
To summarize, landlords and small-portfolio investors should consider ZIP 37203 as a reliable investment area, characterized by its capacity to deliver steady cash flows rather than high-risk, high-reward scenarios. The specific figures driving this assessment include the $1770 FMR, $2,064 market rent, $623,334 median home value, 80.7% renters, 42-day DOM, and $71,281 average household income.
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.