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I did some testing and discovered something about Freddy terror radius that I think should probably be included on this page somewhere.

Freddy's Lullaby really isn't a terror radius in any sense of the word (as the wiki mentions). But his actual terror radius (the heartbeat you hear while in the dream state) still affects survivors even when they are awake. It is just when you are awake you simply don't hear the heartbeat.

What I mean by this is Perks such as Stake Out still get stacks if you are awake and within Freddy's heartbeat. It is not the Lullaby that gives the stakeout stacks, because if Freddy has Monitor and Abuse you can be in his Lullaby without getting Stake Out stacks. Likewise, if Freddy has Distressing you can get Stake Out stacks while not hearing his lullaby at all (because you are actually in his terror radius even though you can't hear it).

This interaction of the underworld heartbeat affecting perks applies to the perks Overwhelming Presence, Unnerving Presence, Coulrophobia, Stake Out, and Object of Obsession. (I think it effects Borrowed time as well, but I didn't explicitly test this perk). 18:27, 19 July 2018 (UTC)Jinxer

Doc, I probably should have been clearer. The Nightmare's Lullaby does not interact with perks in any way. But his heartbeat (what you hear when asleep) does. The Nightmare's heartbeat is always there, even if you are awake, it interacts with all perks in the normal heartbeat way and applies to survivors who are awake.
For for example, if Freddy hooks someone and stands by the hook borrowed time will proc because his actual terror radius is there (even though the survivors are awake and can't hear it). However, if he has insidious then borrowed time will not go off even though both survivors hear the lullaby. This is because the actual silent terror radius has been reduced to zero. 20:52, 19 July 2018 (UTC)Jinxer