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 | $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 | $399,855 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37142 in fiscal year 2024 is set at $1020. This figure represents the maximum amount the U.S. Department of Housing and Urban Development (HUD) will pay towards a tenant's rent under the Section 8 housing voucher program. It is important to note that this is not the actual rent you would charge your tenants, but rather the benchmark used by HUD to determine the subsidy payments.
To put this into perspective, the average market rent in ZIP 37142, according to the latest Census American Community Survey (ACS), is $1,183. This means that while the FMR might be lower than the typical rent in the area, landlords can still set their own rent rates above $1020, but they must ensure that the total rent does not exceed 40% of the tenant's income. The difference between the market rent and the FMR is typically made up by the tenant's contribution.
The 9.6% renter share indicates that nearly one in ten households in ZIP 37142 are renters, which suggests there is a consistent demand for rental properties. However, this percentage also implies that the competition among renters for affordable housing could be significant, making Section 8 properties an attractive option for many seeking stable housing solutions.
When considering the acquisition of a property in this ZIP code, the median home value stands at approximately $353,048. This figure should be taken into account when evaluating the potential profitability and investment return of a Section 8 rental. While the upfront cost might seem high, the steady income provided by the government subsidy can offer a reliable stream of cash flow, especially if you manage your expenses effectively.
Before committing to a Section 8 rental property, it is crucial to verify the physical condition of the unit against HUD’s Housing Quality Standards (HQS). These standards ensure that the property meets basic safety and habitability criteria. Ensuring compliance with HQS requirements is essential to avoid delays in securing tenants and maintaining eligibility for the program.
In summary, the FMR of $1020 in ZIP 37142 provides a clear guideline for the maximum subsidy payment, while the local market rent of $1,183 gives insight into the potential rent you could charge. With a 9.6% renter share, there is a solid demand for rental properties, and the median home value of $353,048 offers a baseline for property acquisition costs. Your next step is to confirm that the property meets the necessary Housing Quality Standards to proceed with confidence.
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.