Department of Numbers

Nashville, Tennessee Home Affordability

The data below measures home affordability for the Nashville-Davidson--Murfreesboro--Franklin, Tennessee metropolitan area using price-to-income and price-to-rent metrics.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Nashville home affordability to other cities.

Nashville, Tennessee Home Price-to-Income Ratios

The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Nashville HPI series. Median household income data for Nashville is from the Census American Community Survey.

Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Nashville, Tennessee Home Price-to-Income Ratio History

Date FHFA (Index Ratio)
September 2011 126.2
June 2011 125.7
March 2011 126.3
December 2010 129.1
September 2010 129.5
June 2010 128.6
March 2010 128.2
December 2009 121.5
September 2009 122.4

Nashville, Tennessee Home Price-to-Rent Ratios

The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Nashville median contract rent data from the Census ACS.

Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Nashville, Tennessee Home Price-to-Rent Ratio History

Date FHFA (Index Ratio)
September 2011 111.9
June 2011 111.4
March 2011 112.0
December 2010 114.4
September 2010 114.8
June 2010 114.0
March 2010 113.7
December 2009 113.8
September 2009 114.6

Nashville, Tennessee Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Nashville, Tennessee and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from ACS median household income and average monthly mortgage rates.

Inferred Affordable Mortgage

Nashville, Tennessee Inferred Affordable Mortgage History

Date Inferred Mortgage
November 2011 $251,526
October 2011 $249,112
September 2011 $247,918
August 2011 $243,225
July 2011 $235,328
June 2011 $236,432
May 2011 $232,871
April 2011 $227,548
March 2011 $227,548
February 2011 $224,698
January 2011 $229,655
December 2010 $230,987
November 2010 $242,360

1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data. ↩

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