Location: Stewart 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $301,886 | 0.56% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 37079 in Stewart County, TN, for fiscal year 2024 is set at $1060. This figure represents the maximum amount that voucher holders can pay toward their rent. However, due to the lack of recent market rent data for this area, it's challenging to provide a direct comparison. Based on the available information, we can infer that voucher tenants in this ZIP code will likely cashflow at the FMR rate, meaning they can afford the rent without significant financial strain.
The median home value in ZIP 37079 is $258,657. To understand the rent-to-price ratio, we can use the FMR to estimate a monthly rental cost. Assuming a typical rental yield of around 1% of the home value, the expected market rent would be approximately $2,587 per month. Comparing this to the FMR of $1060, the rent-to-price ratio suggests that properties rented to voucher tenants will be significantly below market rates. This gap indicates that landlords who participate in the Section 8 program will have a lower cash flow compared to those renting at market rates, but still maintain a stable tenant base.
Despite the absence of specific data on the number of days on market (DOM) and the percentage of price cuts, these factors are crucial in understanding the local housing market's dynamics. In areas where the DOM is high and price cuts are frequent, the demand for rentals might be lower, making it harder for landlords to find tenants willing to pay market rates. However, the stability offered by voucher tenants can offset these challenges, providing a consistent income stream even when market conditions are unfavorable.
The strongest angle for investors in ZIP 37079 is stability. Given the reliable income provided by Section 8 tenants and the lower risk associated with government-backed vouchers, investors can expect steady returns without the volatility often seen in fluctuating market rents.
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.