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 | $1,400 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,410 | $171,237 | 0.82% | C |
| 2BR | $1,770 | $276,385 | 0.64% | D |
| 3BR | $2,210 | $392,912 | 0.56% | F |
| 4BR | $2,550 | $490,886 | 0.52% | F |
| 5BR | $2,958 | $608,012 | 0.49% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 37923, Knoxville, TN, is characterized by a median home value of $400,554. This figure provides a baseline for assessing the local housing market's health and potential future trends. Additionally, the fact that only 0.2% of listings have been reduced indicates strong seller pricing power, suggesting that homes are selling at or near their asking prices. The short 10-day median Days on Market (DOM) further supports this conclusion, as it points to a highly active buyer pool, likely driven by low inventory and robust demand.
On the rental side, the Federal Market Rent (FMR) for FY 2024 stands at $1,380, while the actual market rent, measured by Zillow's Observed Rent Index (ZORI), is higher at $1,774. This gap between FMR and ZORI suggests that rental properties in ZIP 37923 offer attractive cash flows compared to government-assisted housing programs, such as Section 8. Landlords and small-portfolio investors should note that the rental market remains competitive, offering opportunities for steady income but also requiring careful management to attract and retain tenants.
The combination of high median home values, minimal price reductions, and quick sales cycles signals that ZIP 37923 has a resilient housing market. For long-term investors, the setup implies a stable appreciation thesis, contingent upon broader economic conditions and local employment trends. The market's ability to maintain its median home value and quickly sell homes without significant price adjustments indicates that property values are unlikely to experience a sharp decline in the coming years. However, the pace of appreciation will depend on external factors, including job growth, population movement, and interest rates. Given the current data, long-term investors can expect modest but consistent gains, making ZIP 37923 a solid choice for those seeking reliable asset appreciation.
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.