Section 8 Fair Market Rent (FMR) for ZIP 37043 - 2027

Investment Score for ZIP 37043

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,120
1 Bedroom	$1,130
2 Bedrooms	$1,380
3 Bedrooms	$1,890
4 Bedrooms	$2,310
5 Bedrooms	$2,680
6 Bedrooms	$3,002
7 Bedrooms	$3,242
8 Bedrooms	$3,404

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,380	$233,505	0.59%	F
3BR	$1,890	$359,837	0.53%	F
4BR	$2,310	$464,511	0.5%	F
5BR	$2,680	$531,468	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 37043 (Clarksville, TN) #### Section 8 Voucher Dynamics In ZIP code 37043, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1440 per month for 2026. This amount represents 18.1% of the median household income in the area, which stands at $95,219. The FMR for a two-bedroom unit is significantly lower than the Zillow median price for a similar-sized property, which is $232,123. This suggests that the rental market is much more affordable compared to the purchase market, with a price-to-FMR ratio of 13.4x. However, the FMR does not necessarily reflect the actual rents charged in the market. Given the high occupancy rate of 95.2%, it is likely that many landlords are charging above the FMR to maximize their profits. For voucher holders, this means they face significant constraints in finding units that accept their vouchers and are willing to rent at or below the FMR. #### Affordability & Renter Profile The renter population in ZIP code 37043 is 29.5% of the total population, indicating a moderate level of renters. With a median household income of $95,219, the average renter would find the FMR for a two-bedroom unit ($1440) relatively affordable, as it represents only 18.1% of their income. However, the high occupancy rate and the fact that the actual rents are likely higher than the FMR suggest that the market is tight, making it difficult for renters to find affordable housing options. Given the constraints imposed by the FMR, potential tenants using Section 8 vouchers might struggle to find suitable housing. Landlords who accept vouchers must agree to rent at or below the FMR, which can be less than what they could charge in a competitive market. This creates a challenge for voucher holders, who may have limited choices and need to compete with other renters willing to pay higher rates. #### Investor Angle From an investor’s perspective, the ZIP code 37043 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1440, but given the high occupancy rate and the likely higher actual rents, investors who can secure properties at or near the FMR could potentially achieve positive cash flow. To determine if this ZIP code is cash-flow positive, we need to consider the typical expenses associated with rental properties, including mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of these expenses at 50% of the FMR, the monthly net income would be around $720. This is a reasonable figure for cash flow, especially considering the relatively low vacancy risk due to the high occupancy rate. However, the investment grade in this market is somewhat mixed. While the demand for rentals is strong, the competition for tenants willing to pay the FMR is likely to be fierce. Investors should carefully evaluate the local rental market dynamics and consider the possibility of higher-than-FMR rents when assessing potential returns. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should prioritize acquiring properties where the rent is at or slightly below the FMR. For example, a two-bedroom unit renting for $1440 or less would be ideal for attracting Section 8 voucher holders. This strategy can help ensure steady occupancy and avoid the risk of being outbid by other landlords who are charging higher rents. 2. **Consider Larger Units**: Given the higher FMR for larger units, such as three-bedroom units at $2000 and four-bedroom units at $2420, investors might want to focus on acquiring properties that can accommodate families with children. These units are more expensive, but they also represent a higher potential income stream. Additionally, families with children often qualify for larger vouchers, which can cover a greater portion of the rent. 3. **Engage with Local Real Estate Agents**: To better understand the local rental market and identify properties that are likely to be rented at or near the FMR, investors should work closely with local real estate agents who specialize in the Clarksville area. These agents can provide valuable insights into the types of properties that are most attractive to voucher holders and the neighborhoods where demand is highest. #### Bottom Line For Section 8-focused investors, ZIP code 37043 offers a mixed picture. The strong demand for rentals and the relatively low FMR as a percentage of median income make it a potentially viable market. However, the tight rental market and the likelihood of higher actual rents mean that securing properties at or near the FMR will be challenging. **Recommendation**: **Hold**. Investors should proceed cautiously and focus on properties that are already priced at or below the FMR. Engaging with local real estate professionals can help navigate the complexities of this market and identify opportunities that align with the goals of Section 8-focused investing.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.