<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF CLAYTON HOMES, INC FOR THE NINE MONTHS ENDED AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-1996
<PERIOD-START>                             JUL-01-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                          51,371
<SECURITIES>                                         0
<RECEIVABLES>                                  400,086
<ALLOWANCES>                                     7,303
<INVENTORY>                                    121,314
<CURRENT-ASSETS>                                     0
<PP&E>                                         235,927
<DEPRECIATION>                                  47,457
<TOTAL-ASSETS>                                 903,433
<CURRENT-LIABILITIES>                           84,026
<BONDS>                                         28,439
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         9,522
<OTHER-SE>                                     666,347
<TOTAL-LIABILITY-AND-EQUITY>                   903,433
<SALES>                                        193,874
<TOTAL-REVENUES>                               236,204
<CGS>                                          133,472
<TOTAL-COSTS>                                  194,327
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                 1,000
<INTEREST-EXPENSE>                                (426)
<INCOME-PRETAX>                                 41,303
<INCOME-TAX>                                    15,700
<INCOME-CONTINUING>                             25,603
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    25,603
<EPS-PRIMARY>                                      .27
<EPS-DILUTED>                                      .27