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 | $302,344 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 42236 reveals a unique blend of yield and stability that could be appealing to both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area stands at $1080 for the fiscal year 2024, significantly higher than the market rent of $864. This indicates a potential opportunity for landlords to command rents above the average market rate, leading to higher yields.
However, the stability metrics present a mixed picture. With only 12.9% of the population being renters, the rental market in ZIP 42236 is relatively small, which could impact the consistency of cash flow. Additionally, the median household income is reported at $68,819, which is a key factor in assessing the financial health of potential tenants. While this figure does not provide a complete picture of tenant reliability, it suggests that the majority of residents have a stable income, which can support regular rental payments.
The absence of data on days on market (DOM) makes it challenging to assess the speed at which properties are rented out. However, the high FMR compared to the market rent implies that there might be some competition among renters willing to pay more for housing, which could lead to quicker tenancy turnovers despite the low percentage of renters in the population.
The home value in ZIP 42236 is estimated at $258,529, which is a significant investment for most small-portfolio investors. Given the disparity between the FMR and the market rent, this suggests that the area is not entirely a high-yield/low-stability 'flip-style' market but rather a zone where moderate yields can be achieved with careful management.
To conclude, ZIP 42236 offers a moderate yield potential due to the higher FMR compared to the market rent. The stability is somewhat compromised by the low percentage of renters but bolstered by the median income levels. Therefore, this area leans towards being a steady-cashflow zone, albeit with a need for strategic property management to ensure consistent occupancy and timely rent collection.
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.