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 | $1,330 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $384,948 | 0.43% | F |
| 3BR | $2,090 | $504,924 | 0.41% | F |
| 4BR | $2,400 | $662,678 | 0.36% | F |
| 5BR | $2,784 | $984,643 | 0.28% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 37772, which includes Lenoir City, TN, reveals a market that falls into the category of moderate yield and moderate stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,310, while the market rent stands at $1,810. This suggests a potential yield that is above average but not exceptionally high, given the FMR represents the maximum rental assistance payment under the Section 8 program.
The median home value in this area is $500,832, indicating a relatively stable housing market. However, the percentage of renters is only 17.8%, which is lower than many urban areas and suggests a smaller pool of potential tenants. This could impact the speed of lease turnovers and the ease of finding new tenants. The days on market (DOM) for rentals is 33 days, which is slightly higher than the national average, pointing to some level of competition among landlords. A higher DOM can indicate either a slower market or landlords holding out for higher rents, both of which could affect the stability of cash flow for investors.
The median household income of $100,711 provides insight into the financial capacity of residents to afford higher rents. This figure supports the possibility of charging closer to the market rate of $1,810, thereby increasing potential yields. However, it also means that tenants might be more selective and willing to wait for better deals, contributing to the aforementioned 33-day DOM.
Given these factors, ZIP 37772 is not characterized as a high-yield, low-stability market suitable for quick flips. Instead, it presents itself as a steady-cashflow zone where long-term investments would likely be more profitable. The balance between rental rates and income levels suggests a stable tenant base, but the relatively low percentage of renters and longer DOM indicate that rapid turnover and high volatility are less likely. For investors, this implies a need for patience and a focus on maintaining quality properties to attract and retain tenants.
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.