Location: Grainger 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 | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $196,768 | 0.52% | F |
| 3BR | $1,280 | $299,771 | 0.43% | F |
| 4BR | $1,460 | $353,798 | 0.41% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 37806, Mascot, TN, presents a nuanced landscape for both landlords and small-portfolio investors. The median home value stands at $280,691, indicating a relatively stable housing market. However, the lack of percentage of listings being reduced and the median days on market (DOM) suggest that there isn't significant downward pressure on home values nor an unusually high turnover rate of homes for sale.
On the rental side, the Fair Market Rent (FMR) for ZIP 37806 as of fiscal year 2024 is set at $1,050. This is notably higher than the current market rent of $804, based on Census American Community Survey (ACS) data. This discrepancy signals a potential upward trend in rental rates, aligning with broader economic indicators that suggest increasing demand for rental properties.
The setup implied by these figures suggests that landlords and small-portfolio investors in Mascot, TN, can maintain or even slightly increase their rental rates without risking tenant loss, given the gap between the FMR and the current market rent. Over the next 12 to 24 months, this could translate into improved cash flow and potentially higher property values as the rental market tightens.
For long-term investors, the realistic appreciation thesis revolves around the gradual alignment of market rents with the FMR. As the local economy grows and the cost of living adjusts, it's likely that rental rates will inch closer to the FMR, driving up the perceived value of rental properties. Additionally, the stability in home values, without significant reductions in listings, suggests that the housing market is unlikely to experience a downturn that would negatively impact property values.
However, it's important to note that the lack of specific data on listing reductions and DOM introduces some uncertainty. This absence means that while there are positive signals from the rental market, the full picture of how the housing market might evolve is incomplete. Long-term investors should remain vigilant to changes in the local economy and housing supply that could affect both rental rates and home values.
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.