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 | $1,210 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,210 | $157,804 | 0.77% | D |
| 2BR | $1,520 | $198,467 | 0.77% | D |
| 3BR | $1,900 | $308,436 | 0.62% | D |
| 4BR | $2,190 | $361,465 | 0.61% | D |
| 5BR | $2,540 | $413,207 | 0.61% | D |
U.S. Census Bureau data (2024)
The dynamics of the ZIP code 37921 in Knoxville, TN, reveal a market in motion, balancing between supply and demand. The Fair Market Rent (FMR) for the area stands at $1310 for the fiscal year 2024, while the actual market rent, measured by Zillow's Observed Rent Index (ZORI), is higher at $1,837. This suggests that the market rent exceeds the government-set FMR, indicating strong rental demand.
The low 0.3% price-cut share signals that landlords and property owners are not frequently lowering their rents to attract tenants, which further supports the notion that demand is robust. Additionally, the relatively short 32-day days on market (DOM) indicates that rental units are quickly occupied once they become available, pointing towards a competitive rental environment.
The median home value in the area is $291,622, suggesting that homeownership is attainable but not without consideration for the financial investment required. With a 40.2% renter share, it becomes evident that a significant portion of the population prefers renting over buying, which could be due to various factors including affordability, job mobility, or lifestyle preferences. This high renter share implies ongoing long-term housing pressure, as rental demand remains steady and substantial.
The interplay between these figures paints a picture of a market where demand is likely keeping pace with or slightly exceeding supply. The disparity between FMR and market rent, combined with the quick turnover of rental properties, points to an environment where landlords can maintain higher rents without resorting to frequent price cuts. This balance is crucial for small-portfolio investors and landlords, as it ensures steady cash flow and occupancy rates.
In summary, ZIP 37921 presents a vibrant rental market characterized by strong demand and competitive pricing. The high percentage of renters and the ability to sustain higher rents above the FMR indicate a dynamic housing landscape that is favorable for those invested in rental properties.
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.