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 | $1,650 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,720 | $325,088 | 0.53% | F |
| 2BR | $1,870 | $443,201 | 0.42% | F |
| 3BR | $2,400 | $623,738 | 0.38% | F |
| 4BR | $2,910 | $811,572 | 0.36% | F |
| 5BR | $3,376 | $1,059,689 | 0.32% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 37206, Nashville, TN, include significant tenant turnover due to the disparity between the market rent of $2,070 and the Fair Market Rent (FMR) of $1,670 for fiscal year 2024. This gap can lead to higher vacancy rates, especially considering the average days on market (DOM) for rental properties is around 45 days. A longer DOM increases the likelihood of vacancies, which directly impacts cash flow.
Additionally, there is an exposure to deferred maintenance costs. The typical home value in this area is approximately $617,764, while the median household income stands at $96,169. These figures suggest that many tenants might struggle to cover additional maintenance costs beyond their monthly rent, potentially leading to increased wear and tear on the property.
However, these risks are somewhat mitigated by the high renter share in the area, which is 49.8%. High renter density generally indicates a robust demand for housing, including those who rely on Section 8 vouchers. This demand can help ensure a steady stream of qualified applicants, reducing the likelihood of prolonged vacancies.
In conclusion, the risks associated with Section 8 investments in ZIP 37206 are moderate.
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.