Section 8 Fair Market Rent (FMR) for ZIP 37927 - 2027

FY 2027 Fair Market Rent Rates

Knoxville, TN (ZIP code 37927) is a medium-sized community with a total population of approximately 27,927 residents. This suburban neighborhood is characterized by a mature community, with a median age of 46.5 years, reflecting a stable and established demographic.

The median household income in this area is $62,927, which is 100.2% higher than the state average. This places it squarely in the middle-income category. The median home value stands at $336,911, representing a 101.1% increase over the state average, indicating a competitive housing market.

Moving into the economics of renting, the Fair Market Rent (FMR) for ZIP code 37927 in fiscal year 2024 is set at $1,280. However, the actual market rent is significantly higher, averaging $1,747. This discrepancy suggests that landlords could potentially see a profit margin by participating in the Section 8 program, given the lower FMR compared to market rents.

The overall livability score of 69 out of 100 reflects a fair quality of life in terms of amenities, cost of living, safety, education, employment, housing, and weather. Notably, the safety score is 89 out of 100, indicating a very safe neighborhood with low crime rates.

Given the data, ZIP code 37927 is well-suited for both hands-off voucher operators and hands-on value-add buyers. The higher-than-average market rent relative to the FMR presents opportunities for hands-off operators to secure steady, government-backed rental income. Meanwhile, the competitive housing market and below-average cost of living suggest potential for value-add strategies, such as improving properties to command higher rents.

Data Sources: FMR data from HUD (2027).

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.