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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $307,461 | 0.34% | F |
| 3BR | $1,290 | $450,621 | 0.29% | F |
| 4BR | $1,480 | $690,312 | 0.21% | F |
U.S. Census Bureau data (2024)
ZIP code 37777, located in Louisville, TN, falls within the larger Knoxville, TN HUD Metro FMR Area. To understand its position relative to other ZIP codes in the Knoxville metro, let's examine its Fair Market Rent (FMR) and other key metrics.
The FMR for ZIP 37777 is set at $1,050 for fiscal year 2024. This figure represents the maximum amount that a household participating in the Section 8 program can pay for rent. In comparison, the average market rent in this ZIP is $1,548. This suggests that the FMR is significantly lower than the actual market rent, indicating a potential value pocket for Section 8 participants. Landlords in this area can benefit from the difference between the FMR and the market rent, but they should also be aware that the subsidy may not cover the full cost of renting in the local market.
The median home value in ZIP 37777 is $445,343. This is a critical metric for understanding the overall housing costs and property values. Within the context of the Knoxville metro, where home values can vary widely, this figure places ZIP 37777 in a mid-tier neighborhood. It is neither the most expensive nor the least expensive part of the metro, making it a balanced option for both investors and tenants.
The renter share in ZIP 37777 is 28.5%. This percentage indicates that nearly one-third of the residents are renters, which is higher than the national average but not unusually high for urban areas. However, when combined with the below-market home values, it could signal a sweet spot for Section 8 eligibility. The higher renter share suggests a greater demand for rental properties, which could be advantageous for landlords willing to participate in the Section 8 program.
In summary, ZIP 37777 appears to be a value pocket within the Knoxville, TN HUD Metro FMR Area. Its FMR is notably lower than the market rent, and while the home values are mid-tier, the elevated renter share makes it an attractive location for Section 8 participation. Landlords and small-portfolio investors should consider the benefits of this area for their investment strategies.
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.