Tenant's payment providing housing for fringe dweller (8)
I believe the answer is:
resident
'dweller' is the definition.
(resident is a kind of dweller)
'tenant's payment providing housing for fringe' is the wordplay.
'tenant's payment' becomes 'rent' (I've seen this in another clue).
'providing housing for' indicates putting letters inside (some letters house other letters within them).
'fringe' becomes 'side'.
'rent' placed around 'side' is 'RESIDENT'.
(Other definitions for resident that I've seen before include "Local" , "Inmate" , "Hotel guest staying for a prolonged period" , "One living somewhere" , "One living in the place referred to" .)