1st Advantage MortgageFor Knoxville, TN rentals, the DSCR test compares rent to the full payment. The Census medians that frame it are $1,191 rent, $239,700 value and $1,527 in yearly taxes.
Knoxville rental market at a glance
Citywide, Knoxville renters pay a median $1,191 in gross rent (rent plus utilities), close to the Tennessee median of $1,189, and owner-occupied homes have a median value of $239,700, about 16% below the Tennessee median of $286,700. Put the two medians together and Knoxville shows a gross yield of 6.0%, close to the range investors often call workable. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.
| Indicator | Tennessee | Knoxville | Difference |
|---|---|---|---|
| Tax as a share of home value | 0.50% | 0.64% | +27% |
| Annual property tax bill, median | $1,442 | $1,527 | +6% |
| Household income, median | $69,595 | $54,039 | -22% |
| Typical monthly rent | $1,189 | $1,191 | +0% |
| Persons per household | 2.45 | 2.14 | |
| Share in 2-4 unit buildings | 5.6% | 7.7% | +38% |
| Long commuters, 45 min plus | 15.2% | 5.8% | -62% |
| Degree holders, age 25+ | 31.1% | 34.6% | +11% |
| Workers on their own account | 9.8% | 7.2% | -26% |
| Renters paying 30%+ of income | 48.8% | 53.8% | +10% |
| Units sitting vacant | 10.2% | 10.6% | +4% |
| Typical construction year | 1987 | 1974 | |
| Annual rent divided by value | 5.0% | 6.0% | +20% |
| Households that rent | 33.1% | 53.4% | +61% |
| Residents (Census estimate) | 7,066,383 | 195,185 |
A renter-heavy city, Knoxville has 53.4% of households renting (well above the Tennessee median of 33%), which is good for demand and a reminder to check rent comparables carefully. Median household income is $54,039, about 22% below the Tennessee median of $69,595, and 54% of renter households pay 30 percent or more of income on rent.
Housing mix and age in Knoxville
Only 52% of units in Knoxville are detached houses. The rest is townhomes, duplexes and apartments, with two to four unit buildings at 8% of the total. With 1974 as the median build year, expect aging HVAC and roofs and ask for the dates of the last replacements.
Roughly 11% of units in Knoxville sit vacant, and the share of rentals available for rent is 6.3% at the survey's snapshot.
How investors should read Knoxville
With a 6.0% rent-to-value ratio, Knoxville deals tend to work when the buyer controls the price and carrying costs, and struggle when either runs above the median. With a 1974 median build year, the question for each property is when the roof and HVAC were last replaced. Because 53% of households rent, vacancies tend to refill, and the pricing question is how much to charge relative to nearby units.
The payment side of the Knoxville ratio
In Knoxville the median tax bill for an owner-occupied home is $1,527, or about 0.64% of value (Tennessee overall: 0.50%). That bill is close to the Tennessee median of $1,442. Set beside the median rent, the tax alone consumes about 11% of annual rent.
Insurance follows risk. FEMA's National Risk Index lists Knox County as relatively moderate overall, with lightning (very high), tornadoes (relatively high) and winter weather (relatively high) as the main drivers.
| Hazard in Knox County, FEMA index | Level |
|---|---|
| Cold waves exposure | Relatively High |
| Winter weather exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Lightning exposure | Very High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
In Knox County, as anywhere, the premium is part of PITIA, which means a quote with the roof, age and flood zone of the actual Knoxville address belongs in your file early.
What the Knoxville medians allow
Worked through with this city's own medians: rent of $1,191 against taxes of about $127 a month leaves $1,064 for principal, interest, insurance and dues at a 1.00 ratio, and $826 at a 1.25 ratio. That arithmetic is the whole game, and the real rent and quotes for your address replace these medians.
What TN law and Knoxville require of landlords
Knoxville requires a short-term rental permit before a unit is advertised or rented for fewer than 30 days. Type 1 covers owner-occupied homes in residential districts and Type 2 covers non-residential districts where residential use is allowed, and city and Knox County business licenses are also required. Nightly stays carry state tax in Tennessee. Tennessee charges sales tax on short-term rentals and a local occupancy tax on stays of 30 consecutive days or fewer, and platforms such as Airbnb collect both on bookings they process, while owners still handle business tax and direct bookings.
Tennessee limits what a Knoxville owner may hold as a deposit: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none). The statute is Tenn. Code Ann. § 66-28-301. Tennessee sets landlord notice for month-to-month tenancies at 30 days written notice before the periodic rental date (10 days for week-to-week), which matters if you inherit a tenant with no lease end date. On rent control, No; local governments may not control rent (Tenn. Code Ann. 66-35-102).
Neighbors of Knoxville by the numbers
Set Knoxville ($239,700 median value) beside its neighbors: Pigeon Forge comes in lowest at $291,800, and Gatlinburg tops the group at $332,000.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Gatlinburg | 36% | $1,018 | $332,000 | 3,663 | |
| Pigeon Forge | 54% | $669 | $291,800 | 6,375 | $1,053 |
| Knoxville | 53% | $1,527 | $239,700 | 195,185 | $1,191 |
What fills Knoxville rentals
About 7.2% of Knoxville workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. Looking at who fills the rentals, government workers are about 15% of employment, 35% of adults hold a bachelor's degree or higher and 6% of commuters travel 45 minutes or more.
Education is part of the Knoxville rental picture, with University of Tennessee at Knoxville, Pellissippi State Community College, College transfer and Johnson University among the institutions listed. For getting around, Knoxville has interstate access via I-40, I-275 and I-75 and air service through McGhee Tyson Airport and Knoxville Downtown Island Airport, which matters to commuters and to out-of-town owners planning a visit.
Putting a Knoxville file together
Run the Knoxville rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Tennessee markets
- All Tennessee DSCR loans
- DSCR loans in Pigeon Forge, TN
- DSCR loans in Gatlinburg, TN
- Every market we cover
Where we checked
- FEMA hazard ratings for Knox County
- Wikipedia: Knoxville, Tennessee
- Knoxville short-term rentals
- Knoxville STR FAQ
- Tennessee landlord deposit rules, Tenn. Code Ann. § 66-28-301
- Lodging tax reference: Tennessee short-term rental tax manual
- State rule cited for Knoxville hosts: Tennessee local occupancy tax
- 2020 to 2024 ACS data used for Knoxville
We took the Knoxville data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. For Tennessee tenant law we used RedFlagLease under CC BY 4.0 plus the linked statutes. Last reviewed October 2026; the city and county have the final word on Knoxville rules.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How is Knoxville rent documented for a DSCR loan?
Expect to supply a lease, or let the appraiser's rent schedule stand in for one; the Knoxville median rent of $1,191 is context and not a substitute.
How is the DSCR figure built for a Knoxville property?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Knoxville median rent of $1,191, a 1.25 ratio allows about $953 in total payment, of which roughly $127 a month goes to median taxes.
How much real estate tax do Knoxville homeowners pay a year?
The median bill is $1,527, an effective rate near 0.64%. Because Knox County may reassess at sale, use an estimate on the new price when you run the ratio.
Is short-term rental income allowed for a Knoxville DSCR loan?
Yes on programs built for it, once the use is lawful in Knoxville. Gather twelve months of statements or a third-party projection, and have Tennessee tax registration squared away.
What are the security deposit rules for a Tennessee landlord?
Start with Tenn. Code Ann. § 66-28-301. The limit: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none). Talk to a Tennessee attorney for a lease form that matches.
Is flood or storm risk a concern for a Knoxville rental?
FEMA's index puts the county at relatively moderate overall. A lender cares about the premium and any flood requirement, which are address-specific in Knoxville.
How do LLC closings work for Knoxville rentals?
Not required. An LLC borrower is routine for investor programs, with entity paperwork and a guaranty. Form the company before you go under contract in Knoxville.