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 | $1,230 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,940 | $449,230 | 0.43% | F |
| 4BR | $2,230 | $571,307 | 0.39% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 37737, located in the Knoxville, TN HUD Metro FMR area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $1200 for the fiscal year 2024 contrasts sharply with the actual market rent of $1,519, as reported by the Census ACS. This discrepancy means that tenants eligible for Section 8 assistance may struggle to find properties within their budget, while landlords might face difficulties in renting out their units at the market rate.
Acquisition in this ZIP code is not particularly affordable. With a median home value of $429,678, potential investors must be prepared for significant upfront costs. The lack of available data on days on market (DOM) and the low percentage of homes needing price cuts (0.3%) indicate a stable but not particularly dynamic housing market, suggesting limited opportunities for acquiring properties at discounted rates.
Tenant demand in ZIP 37737 is moderate. The population stands at 7,081 individuals, with 19.8% of residents being renters. This suggests a sizeable but not overwhelming pool of potential tenants. However, the mismatch between the FMR and market rents could impact the ability of landlords to attract and retain tenants who rely on Section 8 vouchers.
Verdict: The financial landscape in ZIP 37737 presents challenges for landlords and small-portfolio investors. The gap between the FMR and market rent is substantial, potentially deterring Section 8 eligible tenants. Home values are high, making acquisitions costly without much room for negotiation. While there is a reasonable tenant base, the overall conditions suggest caution for those considering investment in this area.
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.