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 | $1,710 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,780 | $353,683 | 0.5% | F |
| 2BR | $1,940 | $335,237 | 0.58% | F |
| 3BR | $2,490 | $469,594 | 0.53% | F |
| 4BR | $3,020 | $591,466 | 0.51% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 37208, located in Nashville, TN, within Davidson County, revolve around the Subsidized Average Fair Market Rent (SAFMR) and the local market rent rates. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1270. This figure is specific to this ZIP code, meaning it reflects the rental cost standards established for this particular area.
In contrast, the local market rent for a two-bedroom unit, as indicated by the Zillow Observed Rent Index (ZORI), is higher at $2,116. This discrepancy highlights the potential financial challenges landlords might face when participating in the Section 8 program.
A landlord receiving a Section 8 voucher must understand the payment structure. The voucher covers the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. If we assume an average tenant income that results in a 30% contribution, the tenant would pay approximately $381 towards the rent, based on the SAFMR. This leaves the landlord with a reimbursement of $1270 minus the tenant's $381, totaling $889.
Utility allowances also factor into the equation. These allowances vary but are designed to cover reasonable costs for utilities such as electricity, gas, water, and sewage. In ZIP 37208, the utility allowance for a two-bedroom unit is generally around $150. This amount is paid directly to the landlord and should be considered when calculating the overall reimbursement.
Incorporating the utility allowance, the total reimbursement to the landlord would be $889 for rent plus $150 for utilities, summing up to $1039. However, this amount is significantly lower than the local market rent of $2,116. Thus, landlords in ZIP 37208 who participate in the Section 8 program will likely see a reimbursement gap of approximately $1077 per month for a two-bedroom unit.
To summarize, landlords in ZIP 37208 should expect a reimbursement of $1039 for a two-bedroom unit under the Section 8 program, which includes both the rent and utility allowances. This falls short of the local market rent, leaving a notable gap that must be accounted for in their financial planning.
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.