Section 8 Fair Market Rent (FMR) for ZIP 37229 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 37229, located within Nashville-Davidson--Murfreesboro--Franklin County, Tennessee, are straightforward when you understand the structure and how it impacts your rental income. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1650. This figure is specifically tailored for this ZIP code, meaning it reflects the rental rates considered fair within this particular area.

However, due to limited data availability, the local market rent for the same type of unit is currently listed as N/A. This lack of specific market rent data can make it challenging to compare the SAFMR directly to what landlords might charge in the open market. Nonetheless, the SAFMR serves as a crucial benchmark for setting the maximum amount that a Section 8 voucher will cover.

A landlord participating in the Section 8 program should know exactly how much they will receive once the tenant's portion and utility allowances are factored into the total rent. The tenant is typically responsible for paying approximately 30% of their adjusted monthly income towards rent. This amount is then added to the utility allowance, which is a fixed amount intended to cover the cost of utilities for the tenant. The sum of these components is what the Housing Authority will pay on behalf of the tenant, up to the SAFMR limit.

To illustrate, if a tenant's portion of the rent is $495 (assuming an adjusted monthly income of $1650), and the utility allowance is $200, the total reimbursement would be $695. Therefore, for a two-bedroom unit with a SAFMR of $1650, the Housing Authority would pay the remaining $955 to meet the total rent. This ensures that the landlord receives the full SAFMR amount, assuming the rent is set at or below this level.

In ZIP 37229, the typical reimbursement gap or surplus for a two-bedroom voucher would be the difference between the local market rent and the SAFMR. Since the local market rent is not available, we cannot calculate a precise surplus or gap. However, if the local market rent were higher than $1650, landlords would face a reimbursement gap, meaning they would need to accept a lower rent than the market rate. Conversely, if the local market rent were lower, landlords would benefit from a surplus, receiving more than what they might otherwise charge.

Landlords must ensure that their rents do not exceed the SAFMR to qualify for full reimbursement under the Section 8 program. Setting the rent at exactly $1650 would mean receiving the full amount without any gaps or surpluses, providing a stable income stream while ensuring affordability for tenants.

Data Sources: FMR data from HUD (2027).

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.