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 | $2,030 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,580 |
| 5 Bedrooms | $4,153 |
| 6 Bedrooms | $4,651 |
| 7 Bedrooms | $5,023 |
| 8 Bedrooms | $5,274 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,110 | $277,639 | 0.76% | D |
| 2BR | $2,300 | $514,215 | 0.45% | F |
| 3BR | $2,950 | $898,640 | 0.33% | F |
| 4BR | $3,580 | $1,266,746 | 0.28% | F |
| 5BR | $4,153 | $2,000,074 | 0.21% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37204 in Nashville, TN, for fiscal year 2024 is set at $2090. This figure represents the payment standard for Section 8 housing vouchers in your area, meaning that voucher holders can receive assistance up to this amount. However, it's important to note that this is not the rent you will charge; rather, it's the maximum amount the government will pay on behalf of tenants.
In comparison, the Zillow Observed Rent Index (ZORI), which reflects the average rent paid by all renters in the area, is currently at $1,827. This indicates that the FMR is slightly higher than the typical rent in the market, potentially making Section 8 properties more attractive to those seeking affordable housing options.
The demand for rental properties in ZIP 37204 is strong, with 43.7% of residents being renters. This high percentage suggests a robust market for rentals, including those under Section 8, indicating that there is a significant pool of potential tenants looking for affordable housing solutions.
If you're considering acquiring a property specifically for Section 8 tenancy, the median home value in the area is approximately $989,109. This figure represents the acquisition cost of a typical home in ZIP 37204, which you should consider when evaluating the financial feasibility of entering the Section 8 program.
Before you proceed with your decision, verify that your property meets the minimum standards required by the Housing Quality Standards (HQS) set by the Department of Housing and Urban Development (HUD). These standards ensure that the property is safe, decent, and sanitary, which is a prerequisite for participation in the Section 8 program.
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.