1st Advantage MortgageInvestors buying in Franklin, TN are measured on the rent the property earns. Locally, median gross rent is $1,923 and median real estate taxes are $3,011 a year, which together set how much loan a rent can carry.
What the numbers say about Franklin
A DSCR lender in Franklin is comparing a rent against a payment, and the citywide benchmarks are a median gross rent of $1,923 and a median home value of $705,400. The rent figure is well above the Tennessee median of $1,189. Annual median rent is about 3.3% of the median home value in Franklin. That is a thin gross ratio, which tells you purchase prices are high relative to rent, but it blends every housing type, so a house on a specific street needs its own rent comparables.
| Indicator | Tennessee | Franklin | Difference |
|---|---|---|---|
| Annual property tax bill, median | $1,442 | $3,011 | +109% |
| Household income, median | $69,595 | $119,528 | +72% |
| Typical owner-occupied value | $286,700 | $705,400 | +146% |
| Typical monthly rent | $1,189 | $1,923 | +62% |
| Persons per household | 2.45 | 2.54 | |
| Share in 2-4 unit buildings | 5.6% | 4.2% | -24% |
| Long commuters, 45 min plus | 15.2% | 12.3% | -19% |
| Workers on their own account | 9.8% | 13.2% | +35% |
| Renters paying 30%+ of income | 48.8% | 47.1% | -4% |
| Units sitting vacant | 10.2% | 6.2% | -39% |
| Typical construction year | 1987 | 2002 | |
| Annual rent divided by value | 5.0% | 3.3% | -34% |
| Households that rent | 33.1% | 36.2% | +10% |
| Tax as a share of home value | 0.50% | 0.43% | -15% |
| Residents (Census estimate) | 7,066,383 | 87,133 |
36.2% of Franklin households rent, about 10% above the Tennessee median of 33%. That is a healthy base of tenants without the churn of a pure student or military town. Median household income is $119,528, well above the Tennessee median of $69,595, and 47% of renter households pay 30 percent or more of income on rent.
Housing mix and age in Franklin
Only 58% of units in Franklin are detached houses. The rest is townhomes, duplexes and apartments, with two to four unit buildings at 4% of the total. Franklin's median home was built in 2002, so many rentals are newer and the diligence shifts to association documents and builder warranties.
Roughly 6% of units in Franklin sit vacant, and the share of rentals available for rent is 7.2% at the survey's snapshot.
Underwriting angles in Franklin
A 3.3% gross ratio leaves little margin in Franklin. Every dollar of insurance, tax and association dues matters, and some deals work only with lower leverage. Median build year 2002 means many properties still have original systems under warranty or well within their lives. A 36% renter share is large enough to keep units leased, so location relative to jobs and schools drives rent more than the market as a whole.
Taxes and risk in Franklin
Homeowners in Franklin paid a median $3,011 in real estate taxes, well above the Tennessee median of $1,442, an effective rate near 0.43% of home value against 0.50% statewide. In rent terms, the tax bill equals roughly 13% of twelve months of median rent.
County-level hazard data from FEMA (National Risk Index 1.20) shows Williamson County with relatively moderate overall risk and cold waves (relatively high), strong wind (relatively high) and ice storms (relatively high) at the top of the list.
| Hazard in Williamson County, FEMA index | Level |
|---|---|
| Tornadoes exposure | Relatively Moderate |
| Ice storms exposure | Relatively High |
| Strong wind exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Insurance belongs in the ratio from day one, so get a landlord quote for the Franklin address and ask about roof age, wind or hail deductibles and flood cover.
A worked DSCR test for Franklin
Worked through with this city's own medians: rent of $1,923 against taxes of about $251 a month leaves $1,672 for principal, interest, insurance and dues at a 1.00 ratio, and $1,287 at a 1.25 ratio. That arithmetic is the whole game, and the real rent and quotes for your address replace these medians.
Landlord and short-term rental rules in Franklin
Before you underwrite a Franklin rental, confirm with city hall and Williamson County whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. Nightly stays carry state tax in Tennessee. Tennessee charges sales tax on short-term rentals and a local occupancy tax on stays of 30 consecutive days or fewer, and platforms such as Airbnb collect both on bookings they process, while owners still handle business tax and direct bookings.
Tennessee limits what a Franklin owner may hold as a deposit: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none). The statute is Tenn. Code Ann. § 66-28-301. For month-to-month tenants in Tennessee, the landlord's termination notice is 30 days written notice before the periodic rental date (10 days for week-to-week). As to caps on rent in Franklin: No; local governments may not control rent (Tenn. Code Ann. 66-35-102).
Where Franklin sits among nearby places
Set Franklin ($705,400 median value) beside its neighbors: Smyrna comes in lowest at $358,300, and Hendersonville tops the group at $430,700.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Hendersonville | 28% | $2,458 | $430,700 | 63,091 | $1,653 |
| Murfreesboro | 48% | $2,323 | $402,100 | 161,445 | $1,481 |
| Smyrna | 43% | $1,764 | $358,300 | 56,692 | $1,461 |
| Nashville | 48% | $2,472 | $413,600 | 690,130 | $1,586 |
| Franklin | 36% | $3,011 | $705,400 | 87,133 | $1,923 |
What fills Franklin rentals
Self-employment accounts for 13.2% of Franklin's workforce, so many local investors earn income that a standard payroll-based mortgage underwrites poorly. Looking at who fills the rentals, government workers are about 9% of employment, 64% of adults hold a bachelor's degree or higher and 12% of commuters travel 45 minutes or more.
The largest employers listed for Franklin for 2024 include Community Health Systems, Williamson Medical Center, Lee Company, Nissan North America and Cigna Healthcare. Large, stable payrolls like these tend to anchor rental demand near their job sites. Education is part of the Franklin rental picture, with Belmont University, Columbia State Community College, Lipscomb University and Williamson College among the institutions listed. Wikipedia's entry for Franklin notes interstate access via I-65, a practical point for tenants and owners alike.
From a Franklin listing to a loan
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Franklin address, check them in the calculator, and begin your application or get a quote first.
More Tennessee markets
- All Tennessee DSCR loans
- DSCR loans in Nashville, TN
- DSCR loans in Smyrna, TN
- DSCR loans in Murfreesboro, TN
- DSCR loans in Hendersonville, TN
- Every market we cover
Sources
- Wikipedia article, Franklin, Tennessee
- Tennessee landlord deposit rules, Tenn. Code Ann. § 66-28-301
- Tennessee short-term rental tax manual
- Tennessee tax source: Tennessee local occupancy tax
- Census ACS profile behind the Franklin figures
- FEMA National Risk Index
We took the Franklin data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Landlord rules for Franklin rest on Tennessee statutes and the CC BY 4.0 RedFlagLease dataset. Reviewed in October 2026, with no promise that rules have stayed put.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent number goes into a Franklin, TN DSCR calculation?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Franklin median is $1,923.
Do taxes and insurance count in the Franklin DSCR ratio?
Every piece of PITIA is in the denominator. With $1,923 in rent, a 1.25 lender allows about $1,538, leaving $1,287 after median taxes of $251 a month.
How much real estate tax do Franklin homeowners pay a year?
About $3,011 a year at the median, which is 0.43% of value and well above the Tennessee median of $1,442. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Can I use Airbnb income to qualify in Franklin?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Franklin and any HOA permit stays under 30 days, and that you can register for Tennessee lodging tax.
When must a Franklin landlord return a deposit?
Landlords in Franklin follow Tenn. Code Ann. § 66-28-301. Limit: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none).
Should I worry about hazards at a Franklin property?
Overall risk is rated relatively moderate for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Is an entity required for a TN DSCR loan?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Tennessee property.