Location: Sevier County, 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 | $1,120 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,700 | $382,981 | 0.44% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP code 37764 reveal a market in motion, characterized by specific rental and homeownership metrics that provide insight into its current state. The Fair Market Rent (FMR) for the area stands at $1,160 for fiscal year 2024, while the average market rent reported by the Census ACS is slightly higher at $1,212. This suggests that the rental market is slightly above the government's benchmark, indicating a modest level of demand.
The low price-cut share of 0.3% signals that landlords are generally not having to reduce their rents significantly to attract tenants, which is a positive sign for maintaining rental income levels. However, the lack of available data on days on market (DOM) for rental properties makes it challenging to assess how quickly units are filling up, which would be a direct indicator of tenant demand.
The median home value in the area is $365,196, reflecting the overall cost of homeownership. This figure is important for understanding the balance between supply and demand in the housing market. A median home value without significant fluctuations can indicate stability, but without time-series data, we cannot definitively conclude whether supply outpaces demand or vice versa. However, the relatively low price-cut share in the rental market suggests that there might be a slight lean towards demand keeping pace with or slightly exceeding supply.
The 27.1% renter share is a critical metric for assessing long-term housing pressure. In a market where nearly a third of residents are renters, there is a persistent need for affordable housing options. This high percentage of renters could imply that many residents find homeownership unattainable due to financial constraints or other factors. Over time, this can exert upward pressure on rental rates as demand remains steady or grows, especially if new rental units do not come online at a rate sufficient to meet this demand.
In summary, ZIP code 37764 presents a balanced yet dynamic market, with rental rates slightly above the FMR and a significant portion of the population relying on rentals. Landlords and small-portfolio investors should consider these factors when setting rental prices and evaluating the potential for long-term growth in rental income. The ongoing need for rental housing, represented by the substantial renter share, is likely to continue influencing the local real estate landscape.
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.