Location: Clarksville, TN | Metro: Clarksville, TN-KY HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $205,078 | 0.66% | D |
| 3BR | $1,860 | $277,183 | 0.67% | D |
| 4BR | $2,270 | $347,764 | 0.65% | D |
| 5BR | $2,633 | $393,783 | 0.67% | D |
U.S. Census Bureau data (2024)
Clarksville’s 37042 zip code is a dynamic, high-growth area largely defined by its proximity to Fort Campbell. As the home of the 101st Airborne Division, the military installation acts as the region’s economic engine, driving consistent demand for housing from active-duty soldiers, defense contractors, and support personnel. Beyond the base, the neighborhood features a mix of established suburban subdivisions and expanding retail corridors, offering investors a tenant base that values stability and convenience near the Kentucky-Tennessee border.
From a financial standpoint, the data reveals a tight spread between subsidies and the open market. The HUD SAFMR for a 2-bedroom unit is currently $1,280, lagging slightly behind Zillow’s market rent estimate of $1,388, creating a gap of $108. For investors analyzing acquisition costs, the median home value sits at $292,146, while the specific median 2BR sale price is notably lower at $203,146. However, turnover may be a concern, as the median days on market lingers at 91 days, suggesting a slower liquidity cycle compared to hotter markets.
The tenant pool here is substantial, with 41.4% of households renting and a median income of $70,393. This income level suggests that while many residents can afford market rates, the cost of living near a major military hub drives interest in housing assistance programs. The area’s demand is further bolstered by access to public schooling and local amenities, which remain attractive draws for families connected to the post. This environment creates a reliable stream of potential voucher holders who need housing close to the installation.
The Section 8 verdict for 37042 leans toward stability over immediate high-yield cashflow. While the negative gap between the SAFMR and market rent indicates that voucher payments might not cover top-tier market rates, the lower median 2BR sales price of $203,146 offers an achievable entry point. Investors can achieve positive leverage by targeting properties priced efficiently, relying on the consistent demand from Fort Campbell personnel to minimize vacancy risk over maximizing monthly per-unit spreads.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.