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 |
|---|---|---|---|---|
| 2BR | $1,220 | $151,423 | 0.81% | C |
| 3BR | $1,690 | $269,739 | 0.63% | D |
| 4BR | $2,040 | $347,411 | 0.59% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 42217, Crofton, KY, stands at $65,357. Considering the market rate rent of $841 according to Census ACS data, it becomes evident that affording housing in this area poses a challenge for many households. When comparing the market rate to the Federal Market Rent (FMR) standard set at $950 for zip FY 2024, the disparity highlights an affordability gap.
The FMR, which is the payment standard for Section 8 vouchers, exceeds the market rate by $109 per month. This means that voucher holders can potentially secure better quality housing or have additional financial resources available to them compared to those paying the market rate. However, given that only 15.5% of the 3,799 population are renters, the overall demand for rental properties might be relatively low, leading to increased competition among landlords.
The affordability gap suggests that landlords could face difficulties in attracting tenants who can afford the higher FMR rates. While voucher recipients provide a stable income stream, they also limit the rent to the FMR level, which may not cover all costs for higher-end units. For landlords considering their strategy, focusing on cash-paying tenants requires ensuring rents remain competitive and affordable, ideally closer to the market rate of $841.
The takeaway for landlords is to carefully evaluate the balance between accepting Section 8 vouchers, which ensure timely payments but cap potential rental income, and targeting cash-paying tenants who may offer higher rents but require more competitive pricing to attract them. Given the median income and market rate, landlords should consider offering amenities or services that add value without significantly increasing costs to remain attractive to both types of tenants.
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.