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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $372,201 | 0.37% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 37853, part of the Knoxville, TN HUD Metro FMR Area, is nearly balanced but leans slightly towards being unprofitable. The Fair Market Rent (FMR) set at $1,050 for the fiscal year 2024 is marginally higher than the reported market rent of $1,015 based on Census ACS data. This suggests that landlords might struggle to fully cover costs if they adhere strictly to the FMR guidelines.
Acquisition in this area is moderately affordable, with a median home value of $334,135. However, the lack of data regarding days on market (DOM) and the percentage of homes requiring price cuts indicates that there is insufficient information to make a definitive judgment on how competitive the housing market is for potential acquisitions.
Tenant demand is strong, supported by a population of 3,365 residents, with a significant 30.7% of them being renters. This percentage translates into a substantial number of potential tenants, ensuring a steady flow of rental applications.
Verdict: While the rent math is close, it does not favor profitability for landlords following the FMR. Acquisition is feasible given the median home value, though without additional market dynamics data, the competition level remains unclear. Tenant demand is robust, which mitigates some risks. Landlords should carefully consider their cost structures and possibly seek areas with more favorable FMR-to-market rent ratios to ensure sustainable profits.
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.