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 | $1,520 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $276,767 | 0.62% | D |
| 3BR | $2,210 | $346,293 | 0.64% | D |
| 4BR | $2,680 | $464,709 | 0.58% | F |
| 5BR | $3,109 | $513,781 | 0.61% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 37218, Nashville, TN, stands at $61,919 per year. Considering the market rate for rent at $2,003 per month (ZORI), it becomes evident that housing costs represent a significant portion of the average household budget. To put this into perspective, annual rent at the market rate would amount to $24,036, which is approximately 39% of the median income. This suggests that rent is already a considerable expense for many residents.
Comparatively, the Fair Market Rent (FMR) set at $1,370 per month for fiscal year 2024 offers a more affordable option for households receiving Section 8 vouchers. At this rate, the annual rent would be $16,440, representing only about 26.5% of the median income. This makes it significantly easier for recipients to cover their living expenses without rent consuming an excessive share of their budget.
With 34.8% of the population being renters and a total population of 15,292, there is a notable demand for rental properties. However, the affordability gap between the ZORI ($2,003) and the FMR ($1,370) means that a substantial number of potential tenants may find it difficult to pay the market rate. Landlords could face increased competition for tenants willing and able to pay the higher market rates.
For landlords considering their strategy, the data clearly indicates that focusing on Section 8 vouchers could be a prudent approach. While the voucher payment is lower than the market rate, it ensures a steady stream of reliable tenants who can afford their rent through government assistance. This strategy mitigates the risk of vacancies due to the high cost of living in the area.
In conclusion, landlords in ZIP 37218 should recognize the financial strain that market-rate rents place on local households. Embracing Section 8 vouchers can provide a stable tenant base and reduce the competitive pressure of finding cash-paying renters who can meet the higher ZORI. The choice should be made based on long-term stability rather than short-term gains from higher rents.
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.