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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $244,698 | 0.69% | D |
U.S. Census Bureau data (2024)
A skeptical investor analyzing ZIP 42232 might have several concerns regarding the feasibility of renting properties through the Section 8 program. Here's how the data addresses these objections:
Will FMR $1010 (zip FY 2024) cover the mortgage on a $237,996 home?
The Fair Market Rent (FMR) for ZIP 42232 in fiscal year 2024 is set at $1010. This amount represents the average rent that a tenant can expect to pay for a unit under the Section 8 program. To determine if this will cover the mortgage on a $237,996 home, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment would be approximately $1275. Therefore, the FMR of $1010 does not fully cover the mortgage payment, leaving a shortfall of around $265 per month.
Is there enough renter demand at 11.3%?
The rental vacancy rate for ZIP 42232 stands at 11.3%. This figure indicates the percentage of available rental units relative to the total number of units. A vacancy rate of 11.3% suggests that there is moderate demand for rentals. Generally, a vacancy rate below 5% is considered strong, while above 10% may indicate weaker demand. However, it's important to note that this rate does not directly correlate with the number of potential Section 8 tenants. The demand for subsidized housing could still be robust even if the overall vacancy rate is higher due to the limited supply of affordable units. To accurately assess demand, one would need to look at the waiting list lengths for local housing authorities and the number of active Section 8 participants in the area.
Will vouchers keep pace with N/A market rents?
The data provided does not include information on the current market rents or the trend of voucher amounts over time in ZIP 42232. Without this information, it's challenging to definitively state whether vouchers will keep up with market rents. Typically, the Housing Choice Voucher program adjusts its payment standards annually based on changes in the FMR. If the FMR increases, so should the voucher amounts. However, the pace of adjustment may lag behind actual market conditions, especially if there are rapid changes in local rental prices. Landlords should monitor both the FMR updates and the local rental market trends to make informed decisions about accepting Section 8 vouchers.
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.