📊 Tennessee · Housing Market 2026
Knoxville Housing Market Data 2026
Median prices, cap rates, rent benchmarks, and investment outlook for Knoxville, Tennessee — data sourced from Zillow, HUD FMR, and Census ACS.
🟡 Moderate Market
Median Price:$308,000
Cap Rate:6.0%
Vacancy:6.6%
$308,000
Median Home Price
YoY: +4.8%
6.0%
Avg Cap Rate
Cash-on-cash: 5.3%
$1,780
Median Rent (2BR/mo)
YoY: +3.2%
6.6%
Vacancy Rate
Moderate
32 days
Days on Market
Moderate pace
$308,000 / 6.0%
Price / Cap Rate
🟡 Moderate Market
📈 Market Analysis — Knoxville, TN
Knoxville in 2026 presents a compelling "Goldilocks" scenario for residential real estate investment
🏘️ Rent Breakdown — HUD Fair Market Rents
HUD Fair Market Rent represents the 40th percentile of gross rents paid by recent movers in Knoxville. Used as a benchmark for Section 8 voucher limits and rental market analysis.
| Bedroom Count | Monthly Rent (HUD FMR) | Annual Rental Income | Est. Cap Rate at Median Price |
|---|---|---|---|
| 1 Bedroom | $1,360/mo | $16,320/yr | 3.7% est. |
| 2 Bedrooms | $1,780/mo | $21,360/yr | 4.9% est. |
| 3 Bedrooms | $2,360/mo | $28,320/yr | 6.4% est. |
* Estimated cap rate uses the 70% rule (30% reserved for expenses). Actual cap rates vary by property and management style.
💰 Cost of Investing in Knoxville
| Cost Item | Rate / Amount | Est. Annual Cost | Monthly Cost |
|---|---|---|---|
| Property Tax | 0.7% effective rate | $2,033 | $169/mo |
| Homeowners Insurance | Tennessee avg premium | $1,700 | $142/mo |
| Total Tax + Insurance | Based on median home price of $308,000 | $311/mo | |
These figures reflect state-level averages. Property tax rates vary by county; insurance costs vary by property type, age, and claims history. Source: Tax Foundation (2025), NAIC (2024).
⚖️ How Knoxville Compares to National Averages
Avg Cap Rate
6.0%
National avg: 5.5%
✓ Above average
Median Home Price
$308,000
National avg: $371,696
✓ More affordable
Vacancy Rate
6.6%
National avg: 7.8%
✓ Low vacancy
2BR Median Rent
$1,780/mo
National avg: $1,469/mo
Days on Market
32 days
National avg: 41 days
Price Growth YoY
+4.8%
National avg: +3.6%
National averages calculated across all 69 tracked US investor markets. A cap rate above the national average suggests stronger cash flow potential relative to purchase price.
🗺️ Nearby Markets in Tennessee
🛠️ Tools for Analyzing Knoxville Deals
Cap Rate Calculator
Calculate cap rate from NOI and property price
Cash Flow Calculator
Monthly cash flow after all expenses
Property Analysis
AI-powered deal analysis with Knoxville market context
Should I Buy This?
Instant AI due diligence with market benchmarks
Rental Optimization
Optimize rents with HUD FMR data for Knoxville
Market Intelligence
Full AI market report for Knoxville, TN
Related Guides & Resources