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 | $1,060 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $165,890 | 0.79% | D |
| 3BR | $1,790 | $216,619 | 0.83% | C |
| 4BR | $2,190 | $277,136 | 0.79% | D |
U.S. Census Bureau data (2024)
ZIP code 42262, located in Oak Grove, KY, is positioned within the Clarksville, TN-KY HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $1210. To understand how this compares to other ZIP codes within the same metro area, we must consider several factors including market rent, home values, and the percentage of renters.
The market rent for ZIP 42262 stands at $1,142, which is slightly below the FMR but still within a reasonable range. This indicates that landlords can expect to charge close to the FMR without significantly exceeding the market rate. The home value in this ZIP code is $211,277, reflecting an affordable housing market relative to many urban areas. With a 58.9% renter share, it suggests a strong demand for rental properties, aligning well with the goals of Section 8 investors who seek areas with high tenant occupancy rates.
Typically, ZIP codes within the Clarksville, TN-KY HUD Metro FMR Area have a mix of FMRs, market rents, and home values. However, the combination of a below-average home value and a higher-than-average renter share in ZIP 42262 points towards a potentially attractive investment scenario for Section 8 participants. High renter share coupled with lower home values often signifies a sweet spot where rental income can be maximized while minimizing property acquisition costs.
Based on the provided figures, ZIP 42262 appears to be a value pocket within the Clarksville, TN-KY HUD Metro FMR Area. It offers a balance between affordability and demand, making it a favorable location for landlords and small-portfolio investors looking to leverage Section 8 benefits. The relatively low home values contrasted with a significant portion of renters suggest that this area could offer competitive advantages over more expensive neighborhoods with similar renter shares.
To summarize, the FMR of $1210, market rent of $1,142, home value of $211,277, and 58.9% renter share indicate that ZIP 42262 is well-suited for Section 8 investments due to its affordability and high demand for rentals. This makes it stand out as a value pocket within the broader metro area, offering solid potential returns for those willing to invest in this community.
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.