Updated 2026 · Based on median market data for Clarksville, TN
The median monthly rent in Clarksville, TN is $1,340, translating to $16,080 in annual gross rental income per unit. The rent-to-price ratio is 0.46% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.46% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $462/mo in gross rent. The gross rent multiplier of 18.0x means it takes 18.0 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.
Renters in Clarksville spend approximately 31% of the local median household income ($52,400) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting deep rental demand. Landlords should be cautious about aggressive rent increases and focus instead on tenant retention to minimize costly turnover.
The vacancy rate in Clarksville is 5.6%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Budget for one month of vacancy per year in your underwriting to be conservative. Population growth of 2% annually is actively adding rental demand, creating a tailwind for landlords.
Clarksville's GRM (price divided by annual rent) is 18.0x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Clarksville's median GRM, target properties where you can achieve rents above $1,340 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $290,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.
At the median rent of $1,340/mo, a single-family rental in Clarksville generates approximately $16,080 in gross annual income. After accounting for 5.6% vacancy ($900 lost), property taxes of $1,682, insurance (~$1,160), and maintenance (~$1,160), the estimated NOI is $11,178 per year, or $931/mo. Adding an 8% management fee ($1,286/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $9,891/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $58,000 down payment, the unlevered yield on equity from NOI alone is 19.3%.
Rent growth in Clarksville is driven by the interplay of population growth (2%), income growth, and housing supply constraints. With population expanding at 2% annually, demand for rental housing is growing faster than most markets can build, which supports above-average rent increases. Projected rent growth of approximately 4% annually would push the current $1,340/mo to $1,507 in 3 years and $1,630 in 5 years. The affordability headroom of $-30/mo between current rents and the 30% income threshold is essentially zero, meaning rent increases must be matched by income growth to avoid tenant turnover.
The median income of $52,400 supports a mixed tenant base of young professionals, small families, and long-term renters. In a smaller market of 168,050 residents, word-of-mouth and local listing platforms may be more effective than national sites for finding tenants.
As a mid-sized market, Clarksville has property management options but less competition among PMs. Expect fees of 8-12% of collected rent. At $1,340/mo, budget $134/mo for management. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,340/mo, self-management of a small portfolio saves meaningful dollars but professional management becomes economical at 3-4 units.
Clarksville vs Tennessee state average and national average across key investment metrics. Clarksville beats the national average but trails the Tennessee average on cap rate.