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 | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $249,101 | 0.58% | F |
| 3BR | $1,810 | $376,752 | 0.48% | F |
| 4BR | $2,090 | $482,433 | 0.43% | F |
U.S. Census Bureau data (2024)
In ZIP code 37804, located in Maryville, TN, there are several potential risks for landlords considering Section 8 investments. Tenant turnover is a significant issue, as the market rent stands at $1,866 compared to the Fair Market Rent (FMR) of $1,220 for fiscal year 2024. This disparity can lead to higher turnover rates among tenants who receive vouchers, as they may struggle to afford the difference between the subsidized amount and the actual market rent.
Vacancy exposure is another concern, with an average Days on Market (DOM) of 22 days indicating that properties may remain vacant longer than desirable. The extended vacancy period can result in lost rental income, which is particularly problematic when relying on Section 8 payments that are often slower to process than traditional leases.
Deferred maintenance is also a risk factor. With a typical home value of $352,349 and a median income of $79,025, landlords must be prepared for the possibility that tenants receiving subsidies may have limited funds available for repairs and maintenance. This could place additional financial burdens on the property owner to ensure that the homes meet the required standards set by the housing authority.
Despite these challenges, the area's high renter share of 24.1% suggests a robust demand for rental properties, including those that accept Section 8 vouchers. A larger number of renters generally translates into greater competition for available units, which can help mitigate some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.