Clarksville
The Fort Campbell medium-term rental play.
Clarksville, adjacent to Fort Campbell and 45 minutes northwest of Nashville, is one of the strongest medium-term rental markets in the Southeast, fueled by constant military PCS relocation, TDY orders, and a growing manufacturing base. Entry pricing is a fraction of Nashville with DSCR-friendly zoning.
Why this market works
- Fort Campbell (5th largest US Army installation) generates a permanent pipeline of 30,90 day PCS and TDY housing demand, MTR occupancy runs 85%+ year-round.
- Entry pricing near $300,350K keeps DSCRs strong even at higher-rate environments.
- Diversified demand base, Google data center, LG Electronics, Hankook Tire, and steady population growth from Nashville-metro spillover.
- Montgomery County and City of Clarksville are STR-permissive relative to Metro Nashville, MTR is essentially unregulated.
Loan programs that fit
- DSCR loan underwritten to MTR (30+ day furnished) income, the primary strategy for Fort Campbell,adjacent properties.
- DSCR loan underwritten to long-term rent for buy-and-hold investors targeting cash-flow and appreciation.
- STR-underwritten DSCR for select downtown Clarksville and Historic District properties with tourism demand.
- Conventional investor loans (Fannie/Freddie DU/LP) for W-2 borrowers who prefer traditional underwriting on sub-$400K properties.
Regulatory landscape
- City of Clarksville requires a business license and lodging tax registration for short-term rentals; no city-wide permit cap.
- Montgomery County lodging tax and Tennessee state/local sales tax collection required on stays under 30 days.
- Medium-term rentals (30+ day stays, furnished) are treated as long-term leases and are not subject to STR permitting or lodging tax.
- Confirm HOA covenants, some subdivisions restrict rental duration or require minimum lease terms.
Underwriting notes
- Lenders will accept BPO or appraiser 1007 for MTR income; furnished-rate comps from Furnished Finder and CorporateHousing.com strengthen the file.
- Basic Allowance for Housing (BAH) rates for Fort Campbell (E-5 with dependents) anchor MTR pricing, use current DoD BAH tables as your income floor.
- Properties within 10 minutes of Gate 4 or Gate 7 command the strongest MTR premiums; drive time matters more than square footage.
- Furnishing budget for a turnkey MTR runs $18,35K, not financeable inside the DSCR loan.
FAQ
Clarksville financing questions
Is Clarksville better as a short-term rental or a medium-term rental?
For most investors, MTR wins. Fort Campbell drives continuous 30,90 day housing demand from PCS moves, TDY orders, and contractors, occupancy runs 85%+ year-round with lower turnover, cleaning, and regulatory friction than STR. STR works in the downtown historic core, but the Clarksville edge is MTR.
Can I use MTR (medium-term rental) income to qualify for a DSCR loan?
Yes. DSCR lenders will underwrite to furnished 30+ day rental income supported by market comps from Furnished Finder, CorporateHousing.com, and the appraiser's 1007. Clarksville's MTR comps are deep enough to make this a straightforward exercise.
Do I need a short-term rental permit in Clarksville?
For stays under 30 days, yes, the City of Clarksville requires a business license and lodging tax registration, and there is no city-wide permit cap. For MTR (30+ day furnished stays), no STR permit is required because those are treated as long-term leases.
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