Location: Sevier County, TN | Metro: Morristown, 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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $347,867 | 0.34% | F |
| 3BR | $1,440 | $405,366 | 0.36% | F |
| 4BR | $1,880 | $530,481 | 0.35% | F |
U.S. Census Bureau data (2024)
The real estate market in Dandridge, TN (ZIP 37725) presents a balanced scenario for both homeowners and investors, particularly those interested in long-term holdings. The median home value stands at $388,358, which is a significant figure for the area. This high median home value, coupled with only 0.2% of listings being reduced, indicates strong seller's pricing power. Sellers are maintaining their asking prices, suggesting that the local housing demand remains robust.
The median days on market (DOM) of 42 days further supports this view. A shorter DOM implies that homes are selling relatively quickly, which can be attributed to the area's desirability and the alignment between property values and buyer expectations. This trend suggests that sellers can expect to achieve close to their asking price, especially if the property is priced appropriately relative to comparable homes.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 37725 is projected at $1,180 for fiscal year 2024, compared to the current market rent of $917 according to Census ACS data. This indicates an upward pressure on rents, which could translate into increased rental income for landlords and small-portfolio investors. The gap between FMR and actual market rents signals potential growth for rental properties, making it an attractive option for those looking to generate steady cash flow.
For long-hold investors, the setup implies a realistic appreciation thesis. With a growing population and limited supply of homes, the potential for appreciation exists. However, the pace will likely be moderate, driven by the gradual increase in demand rather than speculative bubbles. The combination of stable home values, low reduction rates, and positive rental dynamics suggests that Dandridge, TN, offers a solid foundation for investment, but with an expectation of slow and steady growth rather than rapid appreciation.
Investors should focus on properties that align with the median home value and ensure they are well-maintained to attract buyers or tenants. The market appears to favor those who can offer quality housing at competitive prices, leading to a favorable environment for both home sales and rentals. The data points to a market where pricing power is maintained through a balance of supply and demand, making Dandridge a prudent choice for long-term investments.
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.