Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,670 |
| 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 ZIP code 37878 presents several challenges for landlords considering Section 8 investments. Tenant turnover can be high due to the significant gap between the Fair Market Rent (FMR) of $1140 and the local market rent, which is currently unavailable. This disparity may lead to difficulties in attracting tenants willing to pay the higher market rates, thereby increasing the risk of frequent turnovers.
Vacancy exposure is another concern. The days on market (DOM) figure for the area is also not available, but it's crucial for understanding how quickly properties can be rented out. In areas where DOM is typically long, the risk of extended vacancy periods increases, impacting cash flow and profitability.
Deferred maintenance is a critical issue, especially given the typical home value of $229,943 and the median income of $54,821. These figures suggest that residents might struggle to afford substantial repairs or upgrades, even when such costs are covered by Section 8 payments. Landlords must be prepared to handle maintenance issues proactively to avoid potential property degradation.
Despite these risks, the high renter share of 32.7% is a positive indicator. A larger proportion of renters often translates into greater demand for rental housing, including those who rely on Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the financial risks associated with tenant turnover and vacancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.