County Hub — Montgomery County, Tennessee
Montgomery County, TN Mortgage & Home Loan Guide
Clarksville · Fort Campbell · Unincorporated County
Montgomery County is the one county on this site that is not in the Nashville metro area for lending purposes, and that single fact changes almost every number a buyer here cares about. Clarksville has its own metropolitan statistical area, which means a materially lower FHA limit, a lower conforming limit and significantly lower THDA income caps than the counties immediately east. This page lays out what actually applies here — plus USDA eligibility, the Clarksville city tax stack, and how Fort Campbell buyers should be thinking about VA entitlement.
Valor Mortgage is an independent broker in Springfield, one county east. Christopher Armantrout (NMLS #1210804) has financed Middle Tennessee homes since 2015 and works with veterans and active-duty service members constantly.
Christopher Armantrout — Valor Mortgage
615.671.9178 | christopher@valor.mortgage
724 S Main St, Springfield, TN 37172 | Sun–Thu 8am–5pm | Fri 8am–3pm
The Number Most Lenders Get Wrong Here
Montgomery County sits in the Clarksville, TN-KY metropolitan statistical area, not the Nashville one. Buyers, and plenty of loan officers, assume Middle Tennessee means Nashville limits. It does not.
| Program | Montgomery County 2026 | Neighbouring Robertson / Davidson | Difference |
|---|---|---|---|
| FHA | $541,287 | $1,029,250 | $487,963 lower |
| Conventional / conforming | $832,750 | $1,029,250 | $196,500 lower |
| VA | No limit | No limit | Same — entitlement governs |
| USDA | No stated limit | No stated limit | Same |
FHA and conforming figures: HUD FHA Mortgage Limits lookup, Montgomery County TN, limit year CY2026, last revised 1 January 2026. Retrieved 1 September 2026. HUD records a median sale price of $305,000 for the Clarksville TN-KY MSA against $895,000 for the Nashville MSA, which is what drives the gap.
Montgomery sits at the national FHA floor
$541,287 is not a Clarksville-specific calculation — it is the FHA floor that applies to every low-cost county in the United States. Montgomery County does not clear the threshold to go above it.
Practically: an FHA purchase above roughly $541,000 does not work here, where the identical house thirty miles east in Robertson County would be financeable to $1,029,250. If you are shopping near that number, the county line is a live variable in your search. VA financing, by contrast, has no limit at all with full entitlement — which in a Fort Campbell market matters enormously.
Multi-unit limits for Montgomery County in 2026 — FHA: $693,050 duplex, $837,700 triplex, $1,041,125 fourplex. Conforming: $1,066,250, $1,288,800 and $1,601,750.
USDA Eligibility in Montgomery County
USDA Rural Development financing offers no down payment for qualified buyers, and unlike VA it is not limited to veterans — but the property has to sit inside an eligible area. About 35% of Montgomery County is ineligible, and that share is almost entirely the city of Clarksville itself.
| City / area | USDA eligible? | Notes |
|---|---|---|
| Clarksville | Effectively no | 99.94% of the city’s 100.1 sq mi is ineligible. Treat a Clarksville address as a USDA no unless it is on the outermost fringe. |
| Unincorporated county | Largely yes | Outside the Clarksville city limits the great majority of Montgomery County qualifies for zero-down USDA financing. |
Source: USDA Rural Development, Single Family Housing ineligible-area boundaries (RHS SFH/MFH layer, boundary effective 25 July 2023), measured against U.S. Census Bureau city limits. Checked 1 September 2026.
The boundary does not follow the city limit
USDA eligibility is not the same thing as the Clarksville city line, and it has no relationship to zip codes. Some addresses inside the city limits sit outside the ineligible area and some outside the city sit inside it.
Because of that, the countywide and citywide percentages above cannot tell you about a specific house. Eligibility has to be confirmed by street address before you write an offer. Have Christopher check yours →
USDA income limits are lower here too
USDA caps household income by area and household size, on top of the geographic test. Because Montgomery is its own MSA with a lower area median, that cap is lower here than in the Nashville counties — the same household income that clears in Robertson County may not clear in Montgomery. Both tests have to pass, so ask us to run your household against the current published limit before you commit to the program.
Fort Campbell, VA Entitlement and BAH
Fort Campbell straddles the Tennessee–Kentucky line at the county’s northern edge, and it is the reason Montgomery County has one of the highest concentrations of VA-eligible buyers in the state. The work here is not selling you on a VA loan — it is getting the entitlement right.
What actually comes up
Entitlement still tied up in a prior home. A PCS move does not automatically free it. Partial entitlement changes what you can buy without a down payment, and restoration is sometimes worth doing and sometimes not. This gets worked out before you shop, not during underwriting.
BAH as qualifying income. It counts, and it is usually the difference between qualifying and not. It has to be documented correctly.
PCS timelines that ignore your contract dates. We schedule around orders rather than pretending a standard 30-day close applies to everyone.
No VA loan limit with full entitlement. In the one county here where FHA stops at $541,287, that is not a footnote — for an eligible buyer, VA is often the only program that reaches the top of this market.
THDA’s Homeownership for the Brave track offers a reduced rate for military, veterans, reservists, National Guard and surviving spouses. It is not automatically better than VA and it is not automatically worse — we compare them side by side with your actual numbers.
Property Taxes in Montgomery County
Tennessee assesses residential property at 25% of appraised value. Montgomery County levies $2.10 per $100 of assessed value, and Clarksville adds $0.92 on top. There is only one incorporated city in the county, which makes this the simplest tax picture of the five counties here — and one of the starkest.
Worked example — a $400,000 home
Assessed at $100,000. Outside the city limits: $100,000 ÷ 100 × $2.10 = $2,100 a year, $175.00 a month.
Inside Clarksville: $3.02 combined = $3,020 a year, $251.67 a month. That is $920 a year, or $76.67 a month, for crossing a city line.
Note that this is the same line that decides USDA eligibility. Outside Clarksville you may get both the lower tax rate and the zero-down option. Run your own: (purchase price × 0.25) ÷ 100 × combined rate = annual tax
| Jurisdiction | City rate | County rate | Combined | Tax on a $400k home |
|---|---|---|---|---|
| Unincorporated county | — | $2.100 | $2.1000 | $2,100.00 / yr · $175.00 / mo |
| Clarksville | 0.9200 | $2.100 | $3.0200 | $3,020.00 / yr · $251.67 / mo |
Rates per $100 of assessed value. Source: Tennessee Comptroller of the Treasury, Property Tax Rates, tax year 2025 — the most recent year the state has published. Retrieved 1 September 2026. Rates reset after reappraisal cycles; confirm with the county trustee and your city before relying on them for a closing figure.
Tennessee has no state income tax, which matters more here than most places — Fort Campbell spans the Kentucky line, and Kentucky does tax income. Where you live can change your take-home without changing your orders.
Down Payment Assistance for Montgomery County Buyers
THDA sets assistance limits by county, and Montgomery’s income caps are roughly $37,000 lower than the Nashville-metro counties next door. This is the number most often quoted wrong.
| THDA limit — Montgomery County | Amount | Nashville-metro counties |
|---|---|---|
| Acquisition cost limit | $500,000 | $500,000 |
| Income limit — 1–2 persons | $102,574 | $139,320 |
| Income limit — 3 or more persons | $117,961 | $162,540 |
Source: THDA Acquisition Cost & Income Limits by County, Great Choice and HFA Advantage mortgage loan programs, effective 1 August 2026. Retrieved 1 September 2026.
Montgomery has targeted census tracts
THDA flags Montgomery County as containing targeted census tracts, where the first-time homebuyer requirement is waived. For a service member who owned a home at a previous duty station, that is frequently the difference between using Great Choice and being told you are ineligible. It is decided by the specific property address.
Rural Property Underwriting Outside Clarksville
The eligible, lower-taxed part of Montgomery County is also the part with well water, septic systems and acreage. These issues are real and they kill closings late when nobody raises them early.
Well and septic
USDA and FHA both require inspections and water quality testing, with specific distance requirements between well and septic components. Schedule the testing early rather than in the final week.
Acreage and outbuildings
Value attributable to barns, shops and excess acreage may not count toward the loan. A property with significant land does not appraise like the comparable sales you found online, and the gap comes out of your down payment. Tell us about the acreage before you are under contract.
Manufactured housing
Manufactured homes are common here and carry their own rules: permanent foundation, HUD tags intact, age restrictions that vary by program. Which programs work is knowable before you tour.
Private roads and shared easements
Several loan products require a recorded road maintenance agreement where access is shared or unmaintained. Creating one means getting neighbours to sign, which takes longer than your contract timeline allows if you find out in week three.
What a Montgomery County Purchase Actually Costs
We are not quoting an interest rate on a web page. Everything around the rate, though, is knowable now.
| Cost component | What to expect in Montgomery County |
|---|---|
| Down payment | USDA 0% · VA 0% · FHA 3.5% · conventional 3–5% for many first-time buyers. Which of these you can use is decided partly by the address, per the USDA section above. |
| Property tax | $175.00 to $251.67 a month on a $400,000 home depending on where the property sits. Use the stacking table above for your specific jurisdiction. |
| Homeowners insurance | Middle Tennessee carries real wind and hail exposure and carriers have tightened deductibles on it. Get a real quote early — do not let anyone plug in a placeholder. |
| Mortgage insurance | Handled differently by every program: USDA has an upfront guarantee fee plus an annual fee, FHA has upfront and annual MIP, VA has a one-time funding fee with exemptions, conventional uses PMI that comes off with equity. This line alone can flip which program is cheapest for you. |
| Closing costs | Tennessee recordation and transfer taxes, title work, appraisal, and prepaid escrows. |
Find Out What Your Address Qualifies For
VA entitlement, USDA eligibility outside the city limits, the Clarksville tax difference and THDA targeted-tract status — checked for your specific property. Christopher will review it personally.
Neighbouring Counties
Montgomery borders Robertson to the east. If you are shopping near the FHA limit, note that crossing that county line raises the FHA ceiling from $541,287 to $1,029,250.
Frequently Asked Questions — Montgomery County Homebuyers
What is the FHA loan limit in Montgomery County, TN for 2026?
$541,287 for a one-unit property — the national FHA floor. Montgomery County is in the Clarksville, TN-KY metropolitan statistical area, not the Nashville MSA, so it does not carry the $1,029,250 metro limit that neighbouring Robertson and Davidson counties do. The 2026 conforming limit here is $832,750, the national baseline. VA loans have no limit with full entitlement.
Is Montgomery County eligible for a USDA loan?
Outside Clarksville, largely yes. About 35% of Montgomery County’s land area is USDA-ineligible and 99.94% of the city of Clarksville falls inside that ineligible area. The unincorporated county is mostly eligible for zero down financing. Eligibility is set by street address, not by city or zip code, so it has to be confirmed on the specific property.
What is the property tax rate in Montgomery County, Tennessee?
The county rate is $2.10 per $100 of assessed value and Tennessee assesses homes at 25% of appraised value. Inside Clarksville the city adds $0.92 for a combined $3.02. On a $400,000 home that is $2,100 a year outside the city and $3,020 inside it. Rates shown are the Tennessee Comptroller’s published 2025 figures.
What are the THDA income limits for Montgomery County?
As of 1 August 2026, THDA’s Great Choice and HFA Advantage limits for Montgomery County are $102,574 for a one or two person household and $117,961 for three or more, with a $500,000 acquisition cost limit. These are roughly $37,000 lower than the Nashville-metro counties next door. Montgomery contains targeted census tracts where the first-time homebuyer requirement is waived.
Can I use a VA loan to buy near Fort Campbell?
Yes, and with full entitlement there is no VA loan limit. In Montgomery County that matters more than almost anywhere else, because FHA stops at $541,287 here. The issues that actually come up are entitlement still tied to a home at a previous duty station, documenting BAH as qualifying income, and closing timelines built around PCS orders rather than a standard 30 days.
Where These Numbers Come From
Every figure on this page is taken from the agency that publishes it, not from an aggregator. Here is the audit trail.
| Figure | Source | As of |
|---|---|---|
| FHA and conforming limits | HUD FHA Mortgage Limits, Montgomery County TN, CY2026 | Revised 1 Jan 2026 |
| USDA eligible areas | USDA Rural Development ineligible-area boundaries | Boundary eff. 25 Jul 2023 |
| County and city tax rates | Tennessee Comptroller of the Treasury, Property Tax Rates | Tax year 2025 |
| Assessment ratio (25%) | Tennessee Code Ann. § 67-5-801 | Current statute |
| THDA limits | THDA Acquisition Cost & Income Limits by County | Effective 1 Aug 2026 |
| VA — no loan limit | Blue Water Navy Vietnam Veterans Act of 2019 | Eff. 1 Jan 2020 |
Last updated: 1 September 2026. Loan limits are reset each November for the following calendar year. THDA limits change periodically. Tennessee property tax rates change after reappraisal cycles. We re-check every figure on this page on that schedule.
Valor Mortgage — Locally Owned, Robertson County Based
Christopher Armantrout | 724 S Main St, Springfield, TN 37172
Christopher Armantrout NMLS #1210804 | Encore Lending Group, LLC NMLS #1249911 | Equal Housing Lender | Licensed in Tennessee
724 S Main St, Springfield, TN 37172 | 615.671.9178 | christopher@valor.mortgage
All figures on this page are estimates for general information and are not an offer or a commitment to lend. Loan limits, program limits, tax rates and USDA eligibility boundaries are set by the agencies named above and change without notice; every figure must be verified for your specific property and household before you rely on it. This is not a commitment to lend. All loans subject to credit approval, income verification, and property appraisal. Programs subject to change without notice.
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