1st Advantage MortgageInvestors buying in Murfreesboro, TN are measured on the rent the property earns. Locally, median gross rent is $1,481 and median real estate taxes are $2,323 a year, which together set how much loan a rent can carry.
Murfreesboro rents, values and tenants
For Murfreesboro, the latest five-year ACS shows a median gross rent of $1,481 (about 25% above the Tennessee median of $1,189) and a median owner-occupied value of $402,100 (well above the Tennessee median of $286,700). Annual median rent is about 4.4% of the median home value in Murfreesboro. That is on the low side, so the payment, not the rent, usually decides whether a file clears, but it blends every housing type, so a house on a specific street needs its own rent comparables.
| Indicator | Tennessee | Murfreesboro | Difference |
|---|---|---|---|
| Persons per household | 2.45 | 2.59 | |
| Share of homes detached | 68.3% | 52.8% | -23% |
| Long commuters, 45 min plus | 15.2% | 19.4% | +27% |
| Degree holders, age 25+ | 31.1% | 43.0% | +38% |
| Workers on their own account | 9.8% | 7.0% | -28% |
| Renters paying 30%+ of income | 48.8% | 53.2% | +9% |
| Units sitting vacant | 10.2% | 8.6% | -15% |
| Typical construction year | 1987 | 2002 | |
| Annual rent divided by value | 5.0% | 4.4% | -11% |
| Households that rent | 33.1% | 47.6% | +44% |
| Tax as a share of home value | 0.50% | 0.58% | +15% |
| Annual property tax bill, median | $1,442 | $2,323 | +61% |
| Household income, median | $69,595 | $80,108 | +15% |
| Typical owner-occupied value | $286,700 | $402,100 | +40% |
| Residents (Census estimate) | 7,066,383 | 161,445 |
Roughly 47.6% of occupied housing in Murfreesboro is rented, well above the Tennessee median of 33%. Incomes matter for rent growth: the median household earns $80,108, about 15% above the Tennessee median of $69,595, and 53% of renters are already cost-burdened at 30 percent of income or more.
What Murfreesboro investors are buying
Murfreesboro has a deep multifamily layer: roughly 37% of units sit in buildings of two or more, with 6% in duplexes through fourplexes. Newer housing (median year built 2002) keeps repair budgets lighter, though competing new-build rentals can cap what a landlord can charge.
Use vacancy as a reality check: 9% of all units are vacant in Murfreesboro, and the rental vacancy rate is 7.5%.
What stands out in Murfreesboro
Murfreesboro's 4.4% rent-to-value ratio is on the lean side, so expect lenders to ask for more cash down on a typical single-family purchase and to scrutinize insurance and tax estimates closely. A newer stock in Murfreesboro shifts the diligence toward HOA documents, leasing restrictions and builder warranties. Renters are 48% of households, which gives investors a real tenant base to market to.
Taxes and risk in Murfreesboro
Property taxes in Murfreesboro run a median $2,323 a year for owners, well above the Tennessee median of $1,442. As a share of median value, that is about 0.58%. Measured against a year of median rent, taxes eat about 13% before any other cost shows up.
Rutherford County carries a relatively moderate overall rating in FEMA's National Risk Index, where winter weather (very high), cold waves (relatively high) and tornadoes (relatively high) rank highest.
| Hazard in Rutherford County, FEMA index | Level |
|---|---|
| Riverine flooding exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Winter weather exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Murfreesboro exclusions before trusting a premium estimate.
A worked DSCR test for Murfreesboro
Take the median rent ($1,481), subtract median taxes spread over twelve months ($194), and you have $1,287 of room at a 1.00 ratio. A lender asking for 1.25 cuts that to $991. Real quotes for the address decide the rest.
Landlord and short-term rental rules in Murfreesboro
Rental registration, inspection and nightly-stay rules differ by city, and we have not verified Murfreesboro's from a municipal source. A short call to the city and Rutherford County before you make an offer is cheap insurance. On lodging taxes, a Murfreesboro host should read this first. 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.
Before you set the Murfreesboro rent, know that Tennessee caps the security deposit this way: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none) (Tenn. Code Ann. § 66-28-301). To end a month-to-month tenancy in Murfreesboro, the landlord's notice period is 30 days written notice before the periodic rental date (10 days for week-to-week). Rent regulation: No; local governments may not control rent (Tenn. Code Ann. 66-35-102).
Murfreesboro compared with nearby markets
Prices in the comparison range from $358,300 in Smyrna to $705,400 in Franklin, with Murfreesboro at $402,100.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Hendersonville | 28% | $2,458 | $430,700 | 63,091 | $1,653 |
| Nashville | 48% | $2,472 | $413,600 | 690,130 | $1,586 |
| Franklin | 36% | $3,011 | $705,400 | 87,133 | $1,923 |
| Smyrna | 43% | $1,764 | $358,300 | 56,692 | $1,461 |
| Murfreesboro | 48% | $2,323 | $402,100 | 161,445 | $1,481 |
The renter base in Murfreesboro
The self-employed share of the workforce is 7.0%, and those owners tend to be exactly the buyers DSCR financing was built for. The same survey shows government workers are about 15% of employment, 43% of adults hold a bachelor's degree or higher and 19% of commuters travel 45 minutes or more.
Murfreesboro's principal employers for 2023 are given as Nissan, Rutherford County government and schools, Amazon Fulfillment Center, City of Murfreesboro (includes schools) and Middle Tennessee State University. Rental demand follows jobs, so a property within an easy commute of one of them has a natural tenant pool. Campuses such as Middle Tennessee State University pull tenants into Murfreesboro, and landlords near them can plan around move-in seasons. On the logistics side, air service through Nashville International Airport and Murfreesboro Municipal Airport are noted for Murfreesboro.
Taking a Murfreesboro deal to a lender
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Murfreesboro 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 Smyrna, TN
- DSCR loans in Franklin, TN
- DSCR loans in Nashville, TN
- DSCR loans in Hendersonville, TN
- Every market we cover
Source links
- Wikipedia article, Murfreesboro, Tennessee
- Tenn. Code Ann. § 66-28-301, the Tennessee deposit law
- For nightly stays in Murfreesboro: Tennessee short-term rental tax manual
- Tennessee local occupancy tax
- Census Bureau ACS 5-year 2020 to 2024 tables
- FEMA National Risk Index
The Murfreesboro statistics are five-year ACS estimates (2020 to 2024), which have sampling error. Landlord rules for Murfreesboro rest on Tennessee statutes and the CC BY 4.0 RedFlagLease dataset. Facts were checked in October 2026, and rules change.
Pre-offer checklist
Before you commit on a Murfreesboro deal, confirm the rent with the lease or a market estimate, price the insurance for the exact address, and check how the taxes may change after the sale, so the ratio you run matches the one the lender calculates.
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 Murfreesboro, TN DSCR calculation?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, Murfreesboro renters report a median of $1,481.
How much payment fits the median Murfreesboro rent?
They count in full. A 1.25 ratio on $1,481 of rent permits a payment near $1,185, and median Murfreesboro taxes take about $194 of it each month.
Are Murfreesboro property taxes high for Tennessee?
Median taxes paid are $2,323 a year, or 0.58% of median value, compared with 0.50% statewide. Ask Rutherford County's tax office what the bill becomes after your sale.
Do DSCR lenders count short-term rental income in Murfreesboro?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Murfreesboro and any HOA permit stays under 30 days, and that you can register for Tennessee lodging tax.
What does Tennessee law say about deposits at a Murfreesboro rental?
The cap is stated as follows: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none). Both come from Tenn. Code Ann. § 66-28-301.
Should I worry about hazards at a Murfreesboro property?
The county scores relatively moderate overall in FEMA's index, with winter weather leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Is an entity required for a TN DSCR loan?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Tennessee attorney can advise on structure.