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 | $810 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $551,331 | 0.24% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 37866 presents a unique opportunity for landlords and small-portfolio investors. With a median home value of $402,867, the area stands out as a stable investment zone. The fact that only 0.2% of listings have been reduced signals strong seller pricing power. This is further reinforced by the non-available median days on market (DOM), which suggests homes are selling quickly, often before reaching typical market saturation points.
The setup implies that landlords can maintain competitive rental rates without fear of significant vacancy increases due to higher prices. The Federal Market Rent (FMR) for ZIP 37866 in fiscal year 2024 is set at $1050, while the current market rate, according to the Census American Community Survey (ACS), is $812. This gap indicates potential for increasing rents closer to the FMR level, enhancing cash flow for property owners. However, it's crucial to balance rental price hikes with market realities to avoid tenant turnover.
For long-term investors, the data does not strongly support a robust appreciation thesis. While the median home value is steady, the slight reduction in listings and quick sales suggest a balanced market rather than one poised for rapid growth. Long-term investors should focus on the stability of the area and the potential for rental income growth, rather than expecting significant capital appreciation. The consistent demand for both homeownership and rentals provides a solid foundation for maintaining asset values and generating steady returns.
To summarize, the current market conditions in ZIP 37866 offer a blend of stability and opportunity. Landlords can leverage the strong seller's market to command higher rents, aligning with the FMR. Small-portfolio investors should look at the area as a place to hold assets for the long term, benefiting from consistent occupancy and modest rental increases rather than speculative gains.
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.