That may be true, but it sounds very general. 

Water displacement is really about the most accurate.  The military uses the same bodyfat measurement that health insurance agancies use.  They base it on your height and weight.  At least, that's what the Army uses.  I believe the Marines do this also.  It's highly inaccurate, but it is what it is.  Like before, if you fail the height/weight chart, they tape you at the abdomen and neck three times and average them.  If you pass that, you're good to go.  So if a muscular individual fails their weight, which is almost certain they will, they get taped.  Generally a highly muscular person has a large neck, so they fail.