Market Analysis
Knoxville Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$507,450
Average Monthly Rent
$1,979
Estimated Cap Rate
4.7%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 37917 | $299,999 | $1,575 | 0.53% |
| 37920 | $349,900 | $1,700 | 0.49% |
| 37902 | $665,000 | $2,345 | 0.35% |
| 37922 | $725,000 | $2,295 | 0.32% |
Context · FRED home price index
Market Trends
Knoxville metro area — % change since 2018
Home Prices
+119.0%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Multi-Family | $1,295/mo |
| Apartment | $1,359/mo |
| Single Family | $1,998/mo |
| Townhouse | $2,515/mo |
| Condo | $3,273/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$507,450
Down Payment (20%)$101,490
Monthly P&I$2,647
Monthly Rent$1,979
Est. NOI$14,249/yr
Est. Cash Flow-$1,459/mo
Cash on Cash-15.7%
The Knoxville market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Knoxville
- 1Compressed cap rates below 5% — focus on appreciation or value-add deals
- 21% Rule fails at median prices — need rent of $5,075/mo to pass
- 3Below-average rents keep entry costs low for new investors
- 4Premium market — higher capital requirements but potential for appreciation
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