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 | $261,561 | 0.66% | D |
| 2BR | $1,870 | $389,236 | 0.48% | F |
| 3BR | $2,400 | $530,547 | 0.45% | F |
| 4BR | $2,910 | $659,040 | 0.44% | F |
| 5BR | $3,376 | $798,027 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 37216 in Nashville, TN, has a population of 19,038, with 29.8% being renters. This indicates a substantial rental market presence, but it is not overwhelmingly dominated by renters. The median household income stands at $86,701, which provides a baseline for assessing the financial capacity of potential tenants.
A typical market rent in this area is $1,903 per month. This represents approximately 21.9% of the median household income, calculated as ($1,903 / $86,701) * 100%. While this percentage is significant, it suggests that many households can afford the average rent without relying heavily on housing vouchers.
The Fair Market Rent (FMR) for ZIP 37216, as determined by HUD for FY 2024, is $1,650. This means that the market rent exceeds the FMR by about $253, or roughly 15.3%. Landlords should note that while the market rent is higher than the FMR, it still falls within an acceptable range for many low-income households who might be eligible for Section 8 vouchers.
In terms of tenant profiles, landlords in ZIP 37216 can expect a mix of middle-income earners who can afford the market rent and lower-income individuals who may rely on housing vouchers. The demand for Section 8 vouchers is present but not overwhelming, given the relatively high median income and the fact that less than a third of the population are renters.
To conclude, ZIP 37216 offers a balanced environment for landlords and small-portfolio investors, with a notable rental market presence and a reasonable level of voucher demand. The typical rent eats up a significant portion of the median income, but the gap between market rent and FMR remains manageable, supporting a diverse tenant base.
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.