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 | $1,990 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,070 | $266,049 | 0.78% | D |
| 2BR | $2,260 | $466,499 | 0.48% | F |
| 3BR | $2,900 | $884,485 | 0.33% | F |
| 4BR | $3,520 | $1,492,646 | 0.24% | F |
| 5BR | $4,083 | $2,783,718 | 0.15% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 37205, Nashville, TN, reveals a robust market poised for continued stability over the next 12-24 months. With a median home value of $1,058,665, the area commands premium pricing, indicative of strong demand and limited supply. The fact that only 0.2% of listings have been reduced signals that sellers maintain significant pricing power, as they can hold out for their asking prices without needing to adjust downwards. This resilience suggests a buyer's urgency to secure properties at current valuations.
A median days on market (DOM) of 69 days further supports this narrative. It indicates that homes are selling relatively quickly, underscoring the competitive nature of the market and the buyers' willingness to act swiftly. Such conditions typically result in sustained price levels, if not gradual increases, as the market dynamics favor sellers.
On the rental side, the Federal Market Rent (FMR) for ZIP 37205 is projected at $2,050 for fiscal year 2024, slightly above the current market rent of $2,019 (ZORI). This suggests that rental values are also on an upward trajectory, aligning with the overall trend in the housing market. Landlords and small-portfolio investors can expect steady rental income growth, which complements the potential for property value appreciation.
For long-term investors, the setup in ZIP 37205 implies a realistic appreciation thesis. The combination of high median home values, low listing reductions, and quick sales cycles points to a resilient market capable of maintaining its value. As rental rates also show signs of growth, this dual-income opportunity (rental and eventual sale) makes the area attractive for those looking to build wealth through real estate over the medium to long term. However, it's crucial to recognize that while the market signals strength, there are no guarantees of future appreciation. The focus should be on the current strong fundamentals and the potential for gradual growth.
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.