Section 8 Fair Market Rent (FMR) for ZIP 37996 - 2027
Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| 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 |
To determine if a landlord should invest in ZIP code 37996 for Section 8 properties, follow these steps:
- Does the Fair Market Rent (FMR) of $1280 cover the debt service on a property?
- Yes: If the FMR of $1280 is sufficient to cover the mortgage payments and other financing costs associated with the property, then it is financially viable to consider purchasing a property in this ZIP code.
- No: If the FMR does not cover the debt service, purchasing a property in ZIP 37996 would result in financial losses and is not recommended.
- Is the market rent above, at, or below the FMR?
- Above: If the market rent is higher than the FMR of $1280, landlords can potentially earn additional income by renting to non-Section 8 tenants, making the ZIP code more attractive.
- At: If the market rent matches the FMR, landlords will need to rely solely on Section 8 vouchers to cover their costs, which could be risky if there is a change in policy or funding.
- Below: If the market rent is below the FMR, landlords might struggle to find non-Section 8 tenants willing to pay the required voucher amount, making the investment less appealing.
- Are the percentage of renters and days on the market (DOM) sufficient to meet demand?
- It Depends: Without specific percentages of renters and DOM data, it's challenging to provide a definitive answer. However, generally, if the percentage of renters is high and DOM is low, there is strong demand for rental properties, making ZIP 37996 a good choice. Conversely, if the percentage of renters is low and DOM is high, demand is weak, and the investment is less favorable.
Note: The analysis is limited due to missing data points such as the average market rent and exact percentages of renters and DOM. To make an informed decision, consult local real estate agents or use specialized real estate software to obtain these figures.
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.