Location: Moore County, TN | Metro: Franklin County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 37306 for Section 8 properties, follow this decision tree based on the provided data.
1) Does FMR $1,040 clear debt service on a $316,909 property?
Yes: The Fair Market Rent (FMR) of $1,040 is sufficient to cover the debt service on a property valued at $316,909. This means that if you can secure a tenant paying the full FMR, you will meet your financial obligations.
No: If the FMR does not cover the debt service, then investing in this ZIP code is not advisable. A property priced at $316,909 requires a higher rental income to ensure profitability and sustainability.
It Depends: This scenario arises when the FMR is close to but slightly exceeds the debt service. You must evaluate the risk of not fully occupying the property and the potential for rental increases.
2) Is market rent $771 above, at, or below FMR?
Above: If the market rent of $771 is significantly above the FMR, this ZIP code might not be ideal for Section 8 properties. Landlords could potentially miss out on higher rents available in the open market.
At: If market rent aligns closely with the FMR, this ZIP code presents a balanced opportunity. Section 8 tenants pay competitive rates, making it a viable option.
Below: If market rent is below the FMR, this ZIP code offers an advantage for Section 8 investments. Landlords can attract tenants willing to pay the higher FMR rate, thus securing better returns.
3) Are 17.6% renters + N/A-day DOM enough demand?
Yes: With 17.6% of the population being renters and the days on market (DOM) being unspecified, there is likely enough demand to support a Section 8 investment. However, the lack of DOM data makes this conclusion less definitive.
No: If the percentage of renters is too low or the DOM indicates high vacancy rates, demand would not be sufficient. In this case, the answer is contingent upon obtaining more precise DOM data.
It Depends: Given the limited data, especially the absence of DOM figures, the viability of demand hinges on additional local market research. High DOM values could signal low demand, whereas low DOM values would suggest strong interest in rentals.
To conclude, ZIP 37306's suitability for Section 8 investments is primarily determined by the alignment between FMR and debt service, market rent levels relative to FMR, and the strength of rental demand. Evaluate these factors carefully before proceeding with any investment decisions.
Data Sources: FMR data from HUD (2027). 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.