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 | $1,090 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $240,299 | 0.57% | F |
| 3BR | $1,710 | $305,134 | 0.56% | F |
| 4BR | $1,970 | $380,519 | 0.52% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 37912, Knoxville, TN, is poised to reflect a delicate balance between stability and potential growth over the next 12-24 months. With a median home value of $289,211, only 0.3% of listings have seen price reductions, indicating that sellers maintain significant pricing power. The median days on market (DOM) of 32 days suggests that homes are selling relatively quickly, which supports the notion that the market is robust and buyers are willing to meet asking prices.
On the rental side, the Federal Market Rent (FMR) for ZIP 37912 in fiscal year 2024 is projected at $1,220, while the current market rent, as measured by Zillow's Observed Rent Index (ZORI), stands at $1,318. This indicates that rental properties are commanding a premium above government standards, suggesting strong demand for rental units in the area. Landlords can expect to maintain competitive rents, given the gap between FMR and ZORI, without significant downward pressure.
For long-hold investors, the setup implies a steady appreciation thesis rather than explosive growth. The slight reduction in listings and quick sales suggest that the market is not overheating but remains stable. While the median home value is unlikely to double or even increase by a large margin, it is reasonable to anticipate gradual appreciation based on historical trends and the current economic indicators. Investors should focus on maintaining properties and ensuring they are priced competitively in both the sale and rental markets to maximize returns.
The market signals a balanced environment where pricing power remains with the seller, and rental income is likely to stay above government standards. This provides a solid foundation for long-term investment strategies, particularly for those who can leverage the current market conditions to their advantage.
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.