South Knoxville
Improving, value, growing demand.
Knoxville, TN
Is Knoxville a good place to buy rental property in 2026?
Short answer: yes — for balanced buy-and-hold. Knoxville's median cap rate of about 7.0% (Knoxville metro median) sits near the ~6.5% national median, with typical rent at $1,471–$1,864/mo and Tennessee property tax near 0.67%.
Knoxville offers Tennessee growth and no state income tax at a friendlier price than Nashville — steady University of Tennessee and healthcare demand.
Knoxville market snapshot
Balanced marketMid-range cap rates — cash flow and appreciation are both realistically on the table.
Typical cap rate
7.0%
Knoxville metro median
Typical rent
$1,471–$1,864/mo
HUD FMR · 2–3BR · 2026
Typical price
$260,000–$360,000
est., all-in
Property tax
0.67%
Tennessee effective
Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.
Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.
Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated July 2026
Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.
What rents actually look like in Knoxville
One number never tells the story — HUD publishes ZIP-level Small Area Fair Market Rents for the Knoxville, TN metro area, the metro-wide FMR region that includes Knoxville, and the spread across its ZIP codes is where deals are won or lost. Same purchase price, different ZIP, very different rent.
| ZIP code | 2BR rent | 3BR rent |
|---|---|---|
| 37934 | $2,210/mo | $2,800/mo |
| 37705 | $1,680/mo | $2,130/mo |
| 37928 | $1,530/mo | $1,940/mo |
| 37995 | $1,530/mo | $1,940/mo |
| 37804 | $1,470/mo | $1,860/mo |
| 37721 | $1,380/mo | $1,780/mo |
| 37886 | $1,340/mo | $1,700/mo |
| 37882 | $1,310/mo | $1,660/mo |
| 37742 | $1,240/mo | $1,570/mo |
| 37777 | $1,080/mo | $1,380/mo |
| 37846 | $1,040/mo | $1,340/mo |
| 37874 | $990/mo | $1,290/mo |
Showing 12 of 73 ZIP codes in the Knoxville, TN metro area — the HUD FMR region that includes Knoxville — sampled highest to lowest across the rent range. Source: HUD FY2026 Small Area Fair Market Rents. TrueCap auto-fills the exact ZIP-level figure when you enter a Knoxville address.
Why Knoxville works for rental investors
Better value than Nashville with solid demand drivers. A balanced market: realistic cash flow plus appreciation upside.
See the full Tennessee investing guide — taxes, landlord law & top metros →
Neighborhoods to look at in Knoxville
Fountain City
Stable, family renters, low vacancy.
Powell
Suburb, newer stock, reliable tenants.
Neighborhood notes are starting points, not recommendations — always underwrite the specific property.
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Paste a Knoxville address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Tennessee tax and HUD rent so you start from the right assumptions.
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