Location: Franklin County, TN | Metro: Franklin County, TN
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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,720 | $226,367 | 0.76% | D |
U.S. Census Bureau data (2024)
The Section 8 housing program in ZIP code 37345 operates under specific economic guidelines that both landlords and small-portfolio investors need to understand. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) is set at $1,160 per month for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this area.
In comparison, the local market rent for a similar unit is reported to be $1,076 based on recent Census ACS (American Community Survey) data. This indicates that the SAFMR is slightly above the average market rent, which can be beneficial for landlords who are considering participating in the Section 8 program.
A voucher payment to a landlord consists of two main components: the tenant's contribution and the utility allowance. The tenant is required to contribute 30% of their adjusted income towards rent. Once this amount is determined, the government will cover the difference up to the SAFMR limit. For instance, if a tenant's portion is calculated at $350, the government would pay the remaining $810 to reach the total of $1,160, assuming the landlord charges the maximum SAFMR.
Utility allowances vary but are typically a fixed amount per bedroom size. These allowances do not go directly to the landlord; instead, they are intended to help cover the tenant's utility expenses. Landlords should note that while these allowances are part of the overall financial package, they do not affect the direct rent reimbursement.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 37345 is a surplus of $84 when comparing the SAFMR to the local market rent. This means that landlords could potentially receive $84 more per month than the average market rent for a similar property. However, this surplus is contingent upon the landlord setting the rent at the maximum SAFMR level and the tenant's contribution being less than the difference between the SAFMR and the local market rent.
Landlords must ensure that their units meet the Housing Quality Standards (HQS) set by the local Public Housing Agency (PHA) to qualify for the program. Additionally, landlords should be aware that the rent charged cannot exceed the SAFMR, even if the market rent is higher.
In summary, the Section 8 economics in ZIP 37345 provide a clear framework for landlords. With a SAFMR of $1,160 and a local market rent of $1,076, landlords can expect a surplus of $84 per month on a two-bedroom unit, assuming they charge the maximum allowable rent and the tenant's contribution is less than the difference between the SAFMR and the local market rent.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.