Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,320 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,080 | $486,479 | 0.43% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 37705 does not favor landlords. The Fair Market Rent (FMR) set at $1220 for the fiscal year 2024 is lower than the market rent of $1,290 according to Census ACS data. This discrepancy suggests that landlords may face challenges in covering their costs if they adhere strictly to the FMR guidelines.
Acquisition in this area is moderately affordable. The median home value stands at $424,455. However, the lack of available data on days on market (DOM) and the low percentage of homes needing a price cut (0.2%) indicate that the housing market is stable but not particularly active, which could slow down the process of acquiring properties.
Tenant demand is relatively low in ZIP 37705. With a total population of 5,239, only 11.7% are renters. This means there are approximately 614 potential tenants, which might not be sufficient to support a robust rental market.
In conclusion, while the acquisition cost in ZIP 37705 is within a reasonable range, the low tenant demand and unfavorable rent math make it a less attractive investment opportunity for landlords and small-portfolio investors. The market rent exceeds the FMR, indicating potential difficulties in finding tenants willing to pay the higher rates, especially given the limited number of renters in the area. Landlords should carefully consider these factors before investing in this ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.