Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 37828 presents a nuanced scenario for both landlords and small-portfolio investors. With a median home value set at $373,741, the area offers a solid foundation for investment, particularly when considering the rental dynamics.
The fact that the percentage of listings reduced and the median days on market (DOM) are currently not available suggests a stable market where neither sellers nor buyers are under significant pressure. This stability can imply that there is a balanced demand and supply, which could translate into consistent pricing power for the next 12-24 months. Landlords and investors can maintain their asking prices without drastic adjustments, assuming they align with the current market conditions.
On the rental side, the Forward Moving Rent (FMR) for ZIP 37828 in fiscal year 2024 is projected at $1,140. This figure stands above the current market average rent of $1,033, based on Census ACS data. The gap between the FMR and the actual market rent signals an upward trend in rental prices, likely due to factors such as economic growth, population influx, or increased demand for housing. As a result, landlords can expect to see modest increases in rental income over the coming years, enhancing their cash flow and investment returns.
For long-term investors, the appreciation thesis in ZIP 37828 is realistic but cautious. The current median home value and the expected rise in rental prices suggest that property values will follow suit, albeit gradually. The lack of significant price reductions and the projected increase in rents indicate that the area is not experiencing rapid inflation or deflation. Instead, it points towards a steady, sustainable growth trajectory that benefits those looking to hold properties for extended periods. This environment supports a strategy focused on long-term capital appreciation rather than short-term gains.
In summary, ZIP 37828's real estate market, anchored by a median home value of $373,741 and supported by positive rental trends, provides a favorable setup for maintaining pricing power and achieving modest appreciation. Investors should capitalize on this stability by ensuring their rental offerings are competitive and aligned with the anticipated FMR increases.
Data Sources: FMR data from HUD (2027). 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.