Location: Warren County, 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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $331,207 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 37357 might raise several valid concerns regarding the feasibility of investing in properties under the Section 8 program. Here are the most pressing objections and the data to address them.
Objection 1: Will Fair Market Rent (FMR) of $1270 cover the mortgage on a $328,756 home?
The Fair Market Rent (FMR) set by HUD for ZIP 37357 in fiscal year 2024 is $1270. To determine if this will sufficiently cover the mortgage on a property priced at $328,756, one must consider the interest rate and loan terms. Assuming a conventional 30-year fixed-rate mortgage with an average interest rate of 5%, the monthly mortgage payment would be approximately $1793. This means that the FMR alone does not cover the mortgage payment, leaving a shortfall of $523 per month. Investors should either have equity in the property or plan to supplement the income from other sources.
Objection 2: Is there enough renter demand at 28.4%?
The percentage of renter-occupied housing units in ZIP 37357 stands at 28.4%. This figure indicates that nearly a third of the homes are rented out, which suggests a moderate level of demand. However, the specific number of units required to sustain a portfolio depends on the size of the investment. If the portfolio consists of only a few units, this percentage may suffice. For larger portfolios, additional research into the local rental market trends and vacancy rates is necessary to ensure demand stability. The data provided does not offer a complete picture of the demand dynamics but does suggest that there is a reasonable base of renters.
Objection 3: Will vouchers keep pace with market rents of $782?
The average market rent in ZIP 37357 is $782, while the FMR is $1270. The gap between these figures suggests that voucher holders may struggle to afford market-rate rentals without additional subsidies. It's crucial to monitor the federal budget and local policies to anticipate changes in voucher amounts. Although the data does not provide a direct comparison of past voucher increases against market rent growth, the significant difference between the two figures points to a potential challenge in maintaining occupancy levels. Landlords should be prepared to adjust their expectations and possibly seek out other forms of assistance or subsidies to bridge the gap.
In summary, while ZIP 37357 presents opportunities for Section 8 investments, it also comes with challenges that need careful consideration. The FMR falls short of covering mortgage payments on a median-priced home, indicating a need for supplementary income planning. Renter demand, though present, requires further analysis to gauge its sustainability for larger portfolios. Lastly, the disparity between market rents and FMR highlights the necessity of staying informed about policy changes and subsidy availability.
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.