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 | $277,420 | 0.61% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 42215 stands at $83,098, which places a significant constraint on the financial capabilities of households when it comes to housing expenses. The market rate for rent, according to Census ACS data, is $867. This figure is just above the median income threshold, making it challenging for many residents to comfortably afford market-rate rentals without substantial financial strain.
Comparatively, the Fair Market Rent (FMR) set by HUD for ZIP 42215 in fiscal year 2024 is $990. This higher amount is the standard payment for Section 8 vouchers, which means that tenants with these vouchers can potentially afford higher rent costs than those paying out-of-pocket based on the median income.
With 21.9% of the population renting and a total population of 1,319, the competition among landlords in this area is relatively low due to the smaller pool of potential renters. However, the affordability gap between the median income and both the market rate ($867) and voucher payment standard ($990) highlights a challenge for landlords. Those who choose to accept Section 8 vouchers might find it easier to secure long-term tenants but could face challenges in setting rents high enough to cover costs, especially if they aim for profit margins similar to those possible with cash-paying tenants.
The takeaway for landlords considering whether to accept vouchers versus relying on cash-paying tenants is clear. While the voucher payment standard is higher at $990, it still leaves a considerable portion of the population struggling to meet market rates. Landlords who are willing to accept vouchers can tap into a more stable tenant base, but they must be prepared to adjust their expectations regarding rental income. For those focusing on cash-paying tenants, understanding the local median income will be crucial in setting realistic and competitive rent prices that do not exceed the financial comfort of most households.
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.