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 | $1,020 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $317,131 | 0.32% | F |
| 2BR | $1,280 | $417,123 | 0.31% | F |
| 3BR | $1,600 | $612,920 | 0.26% | F |
U.S. Census Bureau data (2024)
1160 is the Fair Market Rent (FMR) for ZIP code 37882, Townsend, TN, for fiscal year 2024, setting a clear benchmark for rental properties. 1030 represents the actual market rent as reported by the Census Bureau's American Community Survey, indicating a slight premium over the FMR. With a median home value of 400125, Townsend offers a mix of affordable and upscale housing options, appealing to various segments of renters and buyers alike. 20.0 percent is the share of households renting, suggesting a moderate demand for rental units. The median income of 69012 provides insight into the economic capacity of residents, which is critical for assessing potential tenant qualifications. Despite the lack of available days on the market (DOM) data, the price-cut share stands at 0.2 percent, hinting at a stable market where homes typically sell without significant price reductions. These figures collectively paint a picture of a balanced market where Section 8 housing can be both viable and profitable. Landlords and small-portfolio investors should consider the 1160 FMR as a guideline for pricing their rental units, while also being mindful of the 1030 market rent to remain competitive. Given the 20.0 percent renter share and the 69012 median income, there is a solid foundation for Section 8 participation, ensuring steady occupancy rates. In conclusion, Townsend, TN, presents a favorable environment for Section 8 properties, aligning well with the economic realities and housing needs of the area.
Section 8 Verdict: Favorable
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.