Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
The market analysis for Section 8 investors in ZIP code 37995, located within the Knoxville, TN HUD Metro FMR Area, reveals a competitive landscape. The HUD Fair Market Rent (FMR) for the area stands at $1280 for fiscal year 2024. However, due to the lack of specific market rent data, it's challenging to provide an exact comparison. Based on the available HUD FMR, voucher tenants in this area typically cashflow at the FMR rate, meaning that landlords can expect to break even or make a modest profit without having to seek premium units.
The median home value in ZIP 37995 is also not specified, which makes deriving a precise rent-to-price ratio difficult. Nonetheless, given the absence of market rent data and the typical behavior of housing markets, it's reasonable to infer that the rent-to-price ratio might be favorable for rental property owners, particularly those participating in the Section 8 program.
The dynamics of days-on-market (DOM) and the percentage of homes needing price cuts are not provided, but these factors would play a significant role in determining whether it's better to rent or buy in the area. Typically, in areas where the median DOM is high and the price-cut share is substantial, renting becomes a more attractive option due to lower risk and higher liquidity.
In conclusion, the strongest angle for investors in ZIP 37995 is likely cashflow. With the HUD FMR allowing for stable cashflow and the potential for a favorable rent-to-price ratio, landlords can secure steady income streams from their properties. This makes the area particularly appealing for those looking to generate consistent returns through rental income rather than speculative appreciation or long-term stability.
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.