Section 8 Fair Market Rent (FMR) for ZIP 37931 - 2027

Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area

Investment Score for ZIP 37931

Monthly Rent (2BR)

$1,850

Median Price (2BR)

$297,015

1% Rule

0.62%

Annual Yield

7.47%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,470
1 Bedroom	$1,480
2 Bedrooms	$1,850
3 Bedrooms	$2,310
4 Bedrooms	$2,660
5 Bedrooms	$3,086
6 Bedrooms	$3,456
7 Bedrooms	$3,732
8 Bedrooms	$3,919

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,850	$297,015	0.62%	D
3BR	$2,310	$413,664	0.56%	F
4BR	$2,660	$509,773	0.52%	F
5BR	$3,086	$588,247	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

31,842

Median Household Income

$92,150

Housing Units

13,373

Renter Percentage

28.7%

Occupancy Rate

93.8%

Renter Occupied

3,593

The analysis of ZIP 37931 in Knoxville, TN, reveals a market that offers a balance between yield and stability, suitable for landlords and small-portfolio investors seeking moderate returns with reasonable risk.

The Fair Market Rent (FMR) for ZIP 37931 in fiscal year 2024 is set at $1,470, while the average market rent stands at $1,781. This indicates that properties can command a premium over the FMR, offering a higher potential yield. However, the median home value in the area is $432,696, which suggests that property acquisition costs are relatively high compared to the rental income generated.

In terms of stability, the ZIP code has a renter population of 28.7%, which is slightly below the national average. The days on market (DOM) for properties is 30 days, indicating a moderately quick turnover rate for rentals. Additionally, the median household income is $92,150, providing a reasonable level of financial stability among residents.

To classify the market, consider the following:

Yield: With an FMR of $1,470 and a market rent of $1,781, the potential for above-average rental income exists. However, the high median home value of $432,696 means that the yield will be less pronounced when considering the investment cost.
Stability: The 28.7% renter population and median income of $92,150 suggest a stable tenant base. A 30-day DOM also points towards a market where vacancies are not a significant concern.

This market is not characterized as a high-yield/low-stability flip-style market due to the relatively low percentage of renters and the high median home value. Instead, it falls into the category of a steady-cashflow zone, where investors can expect consistent rental income without the volatility associated with areas with a higher proportion of renters and lower property values.

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.