Location: Campbell 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 | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $299,745 | 0.42% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 37769 does not align favorably. The HUD Fair Market Rent (FMR) for the area is set at $1050 per month for fiscal year 2024. However, the actual market rent, according to the Census ACS, stands at $753. This discrepancy suggests that landlords might struggle to find tenants willing to pay the higher FMR rate, unless they can justify the premium through superior property quality or location.
Acquisition in ZIP 37769 is relatively affordable, with a median home value of $243,878. The lack of data on days on market (DOM) and the low price-cut share of 0.3% indicate that homes are selling quickly without significant price reductions. This could be due to a tight housing market or a high demand for properties in this price range.
Tenant demand is moderate in ZIP 37769. With a total population of 5,848, and 25.7% of residents being renters, there is a reasonable pool of potential tenants. However, the market rent being lower than the FMR suggests that competition among landlords for these tenants is likely to be intense, potentially driving down rental rates further.
In conclusion, while the acquisition cost in ZIP 37769 is affordable, the rent math does not currently work in favor of landlords aiming to charge the HUD FMR. Tenant demand exists but is tempered by competitive market conditions. Landlords should carefully consider the local rental market dynamics and possibly look for ways to add value to their properties to justify higher rents or explore other income streams to offset the gap between FMR and market rent levels.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.