Location: Roane 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 | $1,020 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $263,475 | 0.49% | F |
| 3BR | $1,600 | $377,263 | 0.42% | F |
| 4BR | $1,840 | $510,355 | 0.36% | F |
U.S. Census Bureau data (2024)
The dynamics of Lenoir City, TN (ZIP 37771) present a market in motion, characterized by a balance between rental and ownership costs. With a Fair Market Rent (FMR) of $1,120 for fiscal year 2024 and a market rent (ZORI) at $1,673, it's evident that the rental market is pricing higher than the federal guidelines, indicating a demand that exceeds the supply of affordable units. This discrepancy suggests that the market is experiencing upward pressure on rental prices.
The 0.2% price-cut share and 39-day Days on Market (DOM) reflect a seller's market where homes are selling relatively quickly without significant discounts. The median home value stands at $334,573, which is a substantial figure that could influence the decision-making process of potential buyers and renters alike. In such an environment, affordability becomes a critical factor for both groups.
A 28.3% renter share in the population indicates a notable segment of residents who prefer or must rely on rental properties. This percentage can be seen as a signal of ongoing housing pressure, particularly for those who cannot afford to purchase homes at the current median value. Over time, this could lead to increased competition for rental properties, driving up rents further and potentially creating a cycle of escalating housing costs.
In summary, Lenoir City's housing market shows signs of demand outpacing supply, especially in the rental sector. The relatively low price-cut share and quick sales indicate a robust owner-occupied market, while the high renter share suggests persistent challenges for renters and long-term implications for housing affordability. These factors combine to create a dynamic market environment where both rental and homeownership opportunities are influenced by the interplay of supply and demand.
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.