Location: Humphreys County, 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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $259,222 | 0.65% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 37061 in Humphreys County, Tennessee, reveals several key points that are essential for landlords and small-portfolio investors.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for ZIP 37061 in fiscal year 2024 is set at $890, whereas the market rent based on Census ACS data is significantly lower at $675. This discrepancy indicates that landlords may struggle to charge rents that match the FMR without facing vacancy issues due to higher-than-market rates.
Acquisition in this area is relatively affordable. With a median home value of $221,293, potential investors can find properties at a reasonable cost. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that the local real estate market may be less active or volatile, which could complicate investment strategies.
Tenant demand is moderate but present. The ZIP code has a population of 5,382, with 24.2% of residents being renters. This percentage translates to approximately 1,302 individuals who might be seeking rental housing. Given the size of the population, the demand for rental units is likely to be steady, though not exceptionally high.
In conclusion, while the acquisition cost is reasonable in ZIP 37061, the mismatch between the FMR and the actual market rent poses a challenge for maximizing returns. Tenant demand is present, but the population size limits the potential scale of rental operations. Investors should carefully consider these factors before committing to acquisitions in this area.
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.