Section 8 Fair Market Rent (FMR) for ZIP 37886 - 2027

Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area

Investment Score for ZIP 37886

N/A

Monthly Rent (2BR)

$1,380

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,110
1 Bedroom	$1,120
2 Bedrooms	$1,380
3 Bedrooms	$1,740
4 Bedrooms	$1,940
5 Bedrooms	$2,250
6 Bedrooms	$2,520
7 Bedrooms	$2,722
8 Bedrooms	$2,858

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,740	$490,515	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,670

Median Household Income

$82,009

Housing Units

1,912

Renter Percentage

19.7%

Occupancy Rate

81.0%

Renter Occupied

305

The ZIP code 37886, located in Tennessee, represents a suburban area characterized by a mix of residential properties, including both single-family homes and rental units. The region offers a balanced environment suitable for families and renters alike, with access to amenities and services that support daily living.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 37886 for fiscal year 2024 is set at $1050. This figure provides a benchmark for rental pricing, indicating what is considered fair and reasonable for the area.
The average market rent for properties in this ZIP code is $1,388, according to recent data from the Census Bureau's American Community Survey. This suggests that rental rates are slightly above the government-set FMR, reflecting a competitive market where demand exceeds supply.
The median home value in ZIP 37886 is $428,350. This indicates a moderate to high-value housing market, which can be attractive for potential homeowners and also influences the overall economic climate of the area.
Renters make up 19.7% of the population in ZIP 37886, showing a significant but not overwhelming portion of residents who prefer renting over owning their homes. This percentage highlights the ongoing need for quality rental properties.
The median income for households in this ZIP code is $82,009. This economic indicator suggests that residents have sufficient financial capacity to afford higher rents and property values, supporting a robust real estate market.

Investors considering properties in ZIP 37886 should note the discrepancy between the FMR and market rent, signaling opportunities for competitive pricing in rental units. The median home value and median income figures indicate a stable economic foundation, making it a favorable location for both rental investments and potential home purchases. However, the relatively low renter share might suggest that the demand for rentals could be less compared to other areas, requiring careful consideration of the local market dynamics before investing.

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.