Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
U.S. Census Bureau data (2024)
The ZIP code 37917, located within the Knoxville, TN HUD Metro Fair Market Rent (FMR) area, offers a strategic fit for landlords and small-portfolio investors seeking a cash-flow anchor. The Fair Market Rent for FY 2024 is set at $1330, while the current market rent stands at $1,595. This creates a $265 spread above the FMR, indicating that properties in this ZIP can be rented out at a premium, thus generating stronger cash flows.
The median home value in ZIP 37917 is $257,523, which is relatively low compared to many metropolitan areas. This affordability makes it easier for landlords to acquire properties without a significant upfront capital investment, allowing for a larger portfolio to be built. Additionally, the 20-day Days on Market (DOM) average suggests that properties in this area are quickly leased, minimizing vacancy periods and ensuring steady cash flow.
A key consideration for investors is the percentage of price-cut shares, which is 0.3%. This indicates that very few landlords in this area are forced to lower their rents to attract tenants, further supporting the idea of stable cash flow. Moreover, the 51.6% renter share shows a robust demand for rental properties, reducing the risk of vacancy and ensuring consistent income.
The median income of $54,423 aligns well with the FMR, suggesting that there is a sufficient number of potential tenants who qualify for Section 8 housing assistance. This makes ZIP 37917 an ideal location for incorporating Section 8 properties into a portfolio strategy, as it ensures a reliable tenant pool and steady cash flow.
In summary, ZIP 37917 serves as a cash-flow anchor due to its favorable rent-to-FMR ratio, quick leasing times, minimal need for price reductions, and a substantial tenant base. These factors collectively contribute to a stable and predictable cash flow, making it an attractive addition to any landlord's or investor's Section 8 portfolio strategy.
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.