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 | $1,790 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $3,160 |
| 5 Bedrooms | $3,666 |
| 6 Bedrooms | $4,106 |
| 7 Bedrooms | $4,434 |
| 8 Bedrooms | $4,656 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,860 | $270,737 | 0.69% | D |
| 2BR | $2,030 | $392,722 | 0.52% | F |
| 3BR | $2,610 | $565,306 | 0.46% | F |
| 4BR | $3,160 | $749,629 | 0.42% | F |
| 5BR | $3,666 | $957,693 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 37209 in Nashville, Tennessee, presents an interesting scenario for both renters and landlords. The median household income in this area is $81,423, while the market rate for rent, known as the Zillow Rent Index (ZORI), stands at $1,784 per month. This means that a typical household would spend approximately 26.7% of their annual income on rent alone, which is calculated by multiplying the monthly rent by 12 and then dividing it by the annual income ($1,784 * 12 / $81,423 = 0.267).
In comparison, the Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,700. This figure represents the maximum amount that housing authorities will pay landlords through the Housing Choice Voucher program, commonly referred to as Section 8. Given the market rate of $1,784, landlords accepting vouchers would see a reduction in rental income of $84 per unit.
With 53.1% of the population renting and a total population of 37,817, there is significant demand for rental properties in ZIP 37209. However, the affordability gap between the median income and the market rate rent suggests that many renters may struggle to find housing without financial assistance. For landlords, this means that competing for cash-paying tenants could be challenging, especially if they require rents closer to the market rate rather than the voucher payment standard.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While accepting vouchers might mean lower rental income compared to the market rate, it opens up the opportunity to serve a larger portion of the rental market. Landlords who are willing to accept vouchers may find themselves with a more stable tenant base and less vacancy risk, particularly in a competitive market where many renters rely on financial assistance to meet their housing needs.
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.