How Preservation Shapes Property Values In Franklin

Preservation touches daily life in Franklin. It shapes what you can build, how you can renovate, and what buyers will pay for charm, walkability, and stability. In this guide, you will learn how preservation works here, what it can do to your bottom line, and the exact steps to evaluate any property.

By the end, you will understand the value mechanics, know how to assess a specific home or lot, and have practical next steps for buying, selling, or building with confidence.

Let’s start with what preservation means in Franklin.

What “preservation” looks like in a local market

Preservation tools show up in a few common ways. Here are the plain‑English versions and what they mean for you.

• Historic or design district: A mapped area with rules that protect the look and feel of buildings and streets. In Franklin, the Historic Preservation Overlay (HPO) covers multiple local historic districts. Exterior changes usually require a Certificate of Appropriateness, or COA, from the Historic Zoning Commission. See the city’s program overview and districts on the City of Franklin site.
• Local design guidelines and review: Franklin’s Historic District Design Guidelines explain what is compatible for additions, new builds, windows, roofs, fences, and even solar or mechanical equipment. The guidelines help the Commission decide on COAs. Read the current guidelines, effective May 30, 2022.
• Conservation easement: A recorded restriction on land that limits development to protect open space, farmland, or historic character. Easements run with the land and can affect future building rights and value.
• HOA or deed covenants: Private rules for a neighborhood that can govern materials, color, landscaping, signs, fences, and maintenance standards. These are separate from city preservation rules and can be stricter or more specific.

How this differs from zoning or building code:

• Zoning sets use, height, and density. Building code sets safety standards. Preservation rules focus on appearance and compatibility. You often need to meet all three.

For Franklin owners, the big takeaway is simple. If your property sits in the HPO or a local historic district, expect design review for exterior work. Minor items may be approved by staff. Larger changes usually go before the Historic Zoning Commission. See the Commission’s role and COA basics on the city site.

How preservation influences property values — the mechanics

Below are the forces that most often drive value up or down in preserved areas. Use them to guide your pricing, due diligence, and renovation plans.

Supply and demand dynamics

• Scarcity can lift prices. When a district limits demolition, teardowns, or big up‑zonings, it reduces the chance of drastic change next door. Buyers who want stability will pay for that certainty. National research summarized by the National Park Service notes that preserved, authentic districts often attract investment and talent, which supports higher values.
• Character draws demand. Many buyers love Franklin’s walkable Main Street, historic homes, and mature trees. Families seeking predictability, buyers who value craft and detail, and remote workers who want a charming in‑town lifestyle are all likely to pay a premium for these traits.
• But rules can narrow the buyer pool. Some buyers want a blank slate or quick, inexpensive remodels. If approvals take time or materials must match historic standards, a few buyers will step aside.

The net effect in many places has been positive. A multi‑city Texas study found historic designation was often associated with higher property values. Still, outcomes vary by local demand and how strict the rules are.

Aesthetic and character premiums

• Protected streetscapes look and feel cohesive. When façades, rooflines, porches, and fences fit together, it boosts curb appeal and pride of place. That “sense of place” is part of why people choose Franklin. The National Trust points to the economic pull of authentic, walkable downtowns.
• Marketing gets easier. Listings in beloved districts can lean into story, detail, and lifestyle. Professional exterior photography, twilight shots, and block‑level vignettes often perform well because buyers see not just a house, but a neighborhood experience.
• Amenities matter. Downtown Franklin’s Main Street program, local festivals like Dickens of a Christmas and the Main Street Festival, and strong retail bring foot traffic. This visitor energy supports restaurants and shops, which boosts residential appeal nearby. Downtown Franklin’s Main Street accreditation reflects that preservation‑based economic model.

Restrictions, carrying costs, and marketability

• Approvals add steps. In Franklin’s HPO, exterior changes often need a COA. Minor items can be approved administratively. Additions, new builds, or demolitions typically go to the Historic Zoning Commission. COAs expire on a timeline, so plan ahead. See the city’s design guidelines and COA process.
• Costs can be higher. Historically compatible materials, window profiles, or specialty craftsmen may cost more. Those costs are the trade for long‑term stability and a stronger streetscape. The city’s guidelines detail expectations so you can budget early.
• Timing can affect resale. Buyers with tight move‑in timelines may be wary if renovations need Commission review. Clear disclosures and pre‑application guidance can reduce friction.
• Financing and insurance can vary. Some lenders may ask for more detail on planned scope and approvals. Always confirm coverage for older systems and review required repair escrows early in the process.

Academic studies point out that very restrictive rules, or rules that do not fit local market demand, can dampen values in some cases. This is rare but important to consider.

Financial tools that interact with preservation

• Conservation easements: These reduce development rights but can support tax or estate planning strategies in some cases. If an easement protects a historic façade or open space, the value is in what remains buildable and the long‑term character it ensures.
• Federal Historic Rehabilitation Tax Credit: For certified historic buildings used for income‑producing purposes, the federal credit equals 20 percent of qualified rehab costs. Owners must follow the National Park Service and Tennessee Historical Commission certification pathway and meet a substantial rehabilitation test. This can make marginal projects pencil for investors or mixed‑use properties.
• State grants and local programs: Tennessee runs competitive preservation grants in select cycles. The Main Street model and local partnerships can also bring technical help. While Tennessee does not have a broad state historic tax credit, grants and the federal credit still help bridge gaps.

These tools matter most to investors and commercial owners, but they can also lift the appeal of live‑work, small multifamily, and mixed‑use buildings near downtown.

How to assess preservation’s impact on a specific property

Use this simple checklist before you buy or list.

1. Confirm status

• Is the property inside a local historic district or the Franklin Historic Preservation Overlay? Check maps and call the City of Franklin Planning and Sustainability office.
• Is it listed on the National Register of Historic Places? National Register listing is mostly honorific unless federal funds or tax credits are used, but it matters for incentives.

2. Pull the rules

• Read the Franklin Historic District Design Guidelines. Flag items like windows, siding, rooflines, porches, fences, site features, solar panels, and mechanical screens.
• Get HOA or deed covenants from the seller, HOA, or title company. Note architectural controls, paint palettes, and maintenance standards.
• Search the county property records for recorded easements, including any conservation or façade easements.

3. Inspect and budget

• Walk the exterior with a contractor who knows historic work. Look for wood rot, masonry needs, window rehab, porch repairs, and site drainage.
• Build a two‑column budget: required repairs vs. optional upgrades. Note which items likely need a COA.

4. Analyze comps

• Pull recent sales for similar homes inside and outside districts. Note differences in price per square foot, days on market, and concessions.
• Separate single‑family vs. condo, and contributing vs. non‑contributing status where applicable. Studies show effects can differ by property type.

5. Call the right people

• City of Franklin planning staff for HPO and COA guidance.
• HOA manager or closing attorney for covenants.
• Title company for easements.
• A local appraiser or experienced agent for district‑specific market analysis.

6. Quantify the impact

• Estimate a price premium or discount by comparing similar sales and adjusting for condition.
• Add time value. If a likely COA adds 30 to 90 days, reflect that in your timeline and carrying costs.
• If income producing, evaluate the 20 percent federal credit and any grants. These can offset higher rehab costs.

Remember, Franklin’s market is strong. Zillow’s mid‑2025 index places the typical Franklin home near 903,570 dollars. Even small percentage differences tied to preservation can mean large dollar shifts.

Seller strategies: maximizing price for a preserved property

• Lead with stability and story. Highlight the district’s protections, the home’s character, and nearby anchors like the Franklin Theatre, restaurants, and festivals. Buyers pay for a lifestyle as much as a house.
• Show the path, not just the place. Provide a tidy packet with the map showing HPO status, the relevant guideline pages, and a summary of any past COAs. If you secured pre‑application feedback on a common upgrade, include it.
• Make the exterior sing. Fresh paint, repaired trim, and period‑appropriate hardware go far. Professional photography and video should capture porches, rooflines, tree canopy, and the walk to Main Street.
• Reduce friction. Disclose covenants and easements up front. Offer a written estimate and contractor bid for any deferred maintenance that might trigger a COA. Consider securing administrative approvals for minor items before listing.
• Price with precision. Use comps inside the district and just outside, then adjust for condition and uniqueness. Aim to capture the character premium without overreaching beyond recent verified sales.

Buyer strategies: evaluating and negotiating preserved properties

• Do your homework early. Confirm allowed exterior changes, typical approval timelines, and any maintenance standards tied to covenants or easements. Read the Franklin design guidelines for the elements you plan to touch.
• Write smart offers. Ask the seller to provide copies of past COAs and any staff guidance. Consider a contingency tied to Commission approval for your planned exterior scope, or a credit to offset required restorations.
• Budget for materials and time. If windows must be repaired rather than replaced, or if siding must match a certain profile, price it into your offer. Allow time for COA review.
• Confirm lending and insurance. Share your scope and expected timeline with your lender and insurer so there are no surprises on closing or coverage.
• Think long term. You are buying into a stable streetscape. If that fits your lifestyle, the value can grow with you.

Developer and builder considerations

• Read the room on product and price. Lots near protected districts can command more because of proximity to Main Street, walkability, and character. Buyers will expect finishes and massing that respect the neighborhood.
• Design to the guidelines. Align your spec plans with Franklin’s Historic District Design Guidelines before you buy the lot. This can shorten COA timelines and protect your margins.
• Plan approvals into your schedule. Build a permitting calendar with benchmark dates for staff review and Commission hearing. Factor in COA expiration and extension windows.
• Market preservation adjacency. Storyboard your product around streetscape, porches, and scale. Buyers near downtown often respond to details like divided‑lite windows, real wood accents, and thoughtful landscape.
• For income‑producing rehabs, model incentives. If you are working with a certified historic structure, underwrite the 20 percent federal credit and check state grant cycles. The Tennessee Historical Commission explains the tax credit process, and the state’s economic development site lists historic development grants when available.

Local process and resources for Franklin property owners

• City of Franklin Planning and Sustainability: Confirm whether a property lies in the Historic Preservation Overlay and which district rules apply. Start with the city’s HPO page and the Historic Zoning Commission page.
• Historic District Design Guidelines: Review the May 30, 2022 guidelines to see how windows, siding, roofs, additions, garages, fences, solar, and mechanical screening are handled.
• County property records: Search for recorded easements, including conservation or façade easements.
• HOA documents: Get the full covenants, conditions, and restrictions and any architectural guidelines.
• Tennessee Historical Commission: Learn about the 20 percent Federal Historic Rehabilitation Tax Credit and how to apply through SHPO and the National Park Service.
• Main Street and local partners: The Downtown Franklin Association provides context on the preservation‑based economic approach.

Timeline tip: Minor work can sometimes be approved administratively. Larger changes go to the Historic Zoning Commission. Durations vary by scope and meeting calendar. Contact city staff early to map your steps.

What the data says about values in preserved areas

• National studies suggest a general positive association between historic designation and property values, with premiums ranging from low single digits to larger gains over time depending on place and property type. The multi‑city Texas research is a key example.
• Effects are not uniform. Outcomes depend on how strict rules are, local demand, and whether you own a single‑family home or a condo. Some research finds single‑family homes tend to benefit more. A few studies caution that very restrictive policies can reduce values in specific contexts.
• Franklin’s local context supports demand. Downtown’s Main Street programming and festivals draw visitors and spending. Williamson County reported about 1.37 billion dollars in visitor spending in 2024, which boosts downtown vitality and nearby housing appeal.
• High price base magnifies effects. With a typical Franklin home value near 903,570 dollars in mid‑2025, even a 3 to 5 percent preservation‑related difference equals tens of thousands of dollars.
• Data gap: There is no peer‑reviewed, Franklin‑only econometric study that isolates a local preservation premium. Use careful comps and professional valuation to avoid overgeneralizing national averages.

Conclusion and next steps

Preservation in Franklin is both a promise and a plan. The promise is character, walkability, and stability that many buyers love. The plan is a clear review process that guides exterior changes so the neighborhood ages well. For many single‑family homes near downtown, that mix often supports strong demand and resilient values. The right path for you depends on your goals, your timing, and your property’s specific rules.

If you want a tailored read on value, timeline, and strategy, let’s walk it together. I will map the rules, pull the right comps, and position your home or project to win.

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To talk through your property and market strategy, connect with me at Gracie Youngblood.

FAQs

Q: What is the difference between the local Historic Preservation Overlay and the National Register of Historic Places? A: The HPO is a local regulatory overlay that requires approvals for exterior changes. National Register listing is mostly honorific unless you use federal funds or pursue tax credits. Local HPO rules have the biggest day‑to‑day impact for owners.

Q: How long does a COA approval take in Franklin? A: It depends on scope and meeting schedules. Minor work can be approved administratively. Additions, new construction, and demolitions typically go to the Historic Zoning Commission. Contact city staff early for a current timeline.

Q: Do preserved homes always sell for more? A: Not always. Many studies show positive associations on average, but outcomes vary by district rules, housing type, and local demand. Franklin’s strong downtown and tourism activity support demand, but every property is unique.

Q: Can I use the federal historic tax credit on a primary residence? A: No. The 20 percent Federal Historic Rehabilitation Tax Credit applies to certified historic structures used for income‑producing purposes. Owners must follow the National Park Service and Tennessee Historical Commission review process.

Q: Are materials like vinyl windows allowed in Franklin’s historic districts? A: The design guidelines prioritize compatible, historically appropriate materials and profiles. In many cases, repair of existing historic windows is preferred over replacement. Review the guidelines and consult staff.

Q: How do festivals and tourism affect my home’s value? A: Events and visitor spending support downtown businesses and walkability, which many buyers value. This energy can spill over into higher demand for nearby homes.

Q: Who should I call first to confirm if a property is in the HPO? A: Start with the City of Franklin Planning and Sustainability office. They can confirm boundaries, point you to the design guidelines, and explain COA steps.