Knoxville, TN rental property investing guide
The numbers, rules and risks behind rental investing in Knoxville. Tell us what you're looking for and we'll look for an investor-focused agent who fits. Free for investors.
Tell us what you're looking forHow investors approach Knoxville
Knoxville is a growth market where prices have run ahead of rents. The metro has added people fast, with net domestic migration of about 8,900 to 18,000 people a year since 2021, and jobs are up about 12% since 2019. But typical home values have more than doubled since 2015 to about $365,000, a record, while typical rent is about $1,740. That's roughly 0.48% a month, so a median-priced rental won't cash flow with a mortgage at today's rates. Tennessee law is landlord-friendly, and inside city limits investor-owned short-term rentals are limited to non-residential zones. Tell us what you're looking for in Knoxville and we'll look for an investor-focused agent who fits your strategy.
Knoxville's older neighborhoods have duplexes and small multifamily that can pencil better than newer single-family homes. Expect rehab and deferred maintenance.
The University of Tennessee's main campus keeps demand steady near Fort Sanders and the Cumberland Avenue corridor. Leases turn over every year, and wear and tear is higher.
Inside city limits, residential-zone STRs need a Type 1 owner-occupied permit, so house hacking is the realistic STR route in most neighborhoods.
Is Knoxville worth investing in? The long-term trends
People, jobs, rents and prices for the Knoxville metro, straight from the Census Bureau, the Bureau of Labor Statistics and Zillow. Hover or tap a chart for exact values.
View data table
| Period | Value |
|---|---|
| 2020 | 906,075 |
| 2021 | 916,760 |
| 2022 | 933,723 |
| 2023 | 947,525 |
| 2024 | 959,488 |
| 2025 | 968,137 |
View data table
| Period | Value |
|---|---|
| 2021 | +13,377 |
| 2022 | +18,030 |
| 2023 | +13,427 |
| 2024 | +9,481 |
| 2025 | +8,855 |
View data table
| Period | Value |
|---|---|
| 2010 | 358,500 |
| 2011 | 364,500 |
| 2012 | 367,900 |
| 2013 | 369,800 |
| 2014 | 376,800 |
| 2015 | 385,200 |
| 2016 | 392,800 |
| 2017 | 396,000 |
| 2018 | 399,900 |
| 2019 | 405,400 |
| 2020 | 394,700 |
| 2021 | 409,600 |
| 2022 | 429,900 |
| 2023 | 441,900 |
| 2024 | 449,700 |
| 2025 | 455,300 |
View data table
| Period | Value |
|---|---|
| Dec 2015 | $872/mo |
| Dec 2016 | $893/mo |
| Dec 2017 | $943/mo |
| Dec 2018 | $995/mo |
| Dec 2019 | $1,051/mo |
| Dec 2020 | $1,139/mo |
| Dec 2021 | $1,352/mo |
| Dec 2022 | $1,530/mo |
| Dec 2023 | $1,618/mo |
| Dec 2024 | $1,671/mo |
| Dec 2025 | $1,684/mo |
| Sep 2026 | $1,725/mo |
View data table
| Period | Value |
|---|---|
| Dec 2010 | $146,678 |
| Dec 2011 | $142,879 |
| Dec 2012 | $143,738 |
| Dec 2013 | $147,615 |
| Dec 2014 | $151,656 |
| Dec 2015 | $158,401 |
| Dec 2016 | $166,168 |
| Dec 2017 | $175,734 |
| Dec 2018 | $186,777 |
| Dec 2019 | $199,696 |
| Dec 2020 | $223,880 |
| Dec 2021 | $269,390 |
| Dec 2022 | $310,875 |
| Dec 2023 | $342,836 |
| Dec 2024 | $355,104 |
| Dec 2025 | $358,785 |
| Sep 2026 | $363,018 |
View data table
| Period | Value |
|---|---|
| Dec 2015 | 15.1× |
| Dec 2016 | 15.5× |
| Dec 2017 | 15.5× |
| Dec 2018 | 15.6× |
| Dec 2019 | 15.8× |
| Dec 2020 | 16.4× |
| Dec 2021 | 16.6× |
| Dec 2022 | 16.9× |
| Dec 2023 | 17.7× |
| Dec 2024 | 17.7× |
| Dec 2025 | 17.8× |
| Sep 2026 | 17.5× |
Data retrieved October 16, 2026. Figures cover the Knoxville metro area.
The numbers and rules that matter in Knoxville
Zillow Home Value Index, Knoxville metro, Sep 2026 (+1.9% YoY).
Zillow Observed Rent Index, all home types, Sep 2026 (+1.4% YoY). Single-family 3-beds rent higher.
Typical rent ÷ typical home value. Well under the 1% rule; plan on cash flow from buying right, not from rents.
Over the past year: home values +1.9%, rents +1.4%.
Tennessee landlord-tenant basics
Knox County is large enough to fall under Tennessee's Uniform Residential Landlord and Tenant Act (T.C.A. Title 66, Chapter 28), which applies in counties over 75,000 people. It's generally landlord-friendly. Some smaller surrounding counties aren't covered by the Act, so check the rules there.
- Security deposit: no statutory cap. Hold it in a separate account at a regulated financial institution and tell the tenant where it is. Return it, with an itemized list of any deductions, within 30 days after the tenancy ends.
- Nonpayment: serve a written notice giving the tenant a window to pay before you file a detainer warrant. The statute has used 14 days; a 2025 bill proposed 7 for newer leases, so confirm the current period with a Tennessee attorney before you serve one.
- Entry: no fixed statutory notice period for routine entry, but the tenant can't unreasonably refuse it, and emergencies need no notice. Most leases set 24 hours. Put it in yours.
- No rent control: state law (T.C.A. § 66-35-102) bars cities and counties from controlling rents.
Short-term rental rules in Knoxville
The City of Knoxville requires a short-term rental operating permit and a business license, and the permit type depends on whether the owner lives there and how the property is zoned.
- Type 1 permits are for owner-occupied STRs in residential zones: the property has to be your primary residence.
- Type 2 permits are for non-owner-occupied (investor) STRs, and only in non-residential zones that allow residential uses, such as downtown and mixed-use districts.
- Older Type 3 permits allowed limited non-owner-occupied STRs in residential zones. Don't assume a listing's existing permit comes with the house; confirm the permit type and zoning with the city before you're under contract.
- STRs owe Tennessee sales tax plus local hotel occupancy taxes. Register with the Tennessee Department of Revenue and the city, and confirm which taxes your platform collects for you.
- Unincorporated Knox County and nearby cities set their own rules, and HOAs can ban STRs outright. The Smoky Mountain cabin markets in Sevier County are a separate market with their own rules.
Last reviewed October 15, 2026. General information, not legal or tax advice — rules and fees change, so confirm with the city, the statute, or your attorney before you rely on them. Sources: Zillow Research data (ZHVI, ZORI) — Knoxville metro; City of Knoxville — Short-term rentals; Knoxville Code, Chapter 16, Article XV — Short term rental unit ordinance; T.C.A. Title 66, Chapter 28 — Uniform Residential Landlord and Tenant Act; T.C.A. § 66-28-505 — Failure to pay rent; HB 1345 / SB 1088 (2025) — proposed notice change.
Before you make an offer on a rental property, you need more than a gut feeling. Here is the step-by-step framework serious investors use to stress-test a deal on paper first.
Buying a rental out of state comes down to one thing: the quality of your local agent. Here is the five-step process that keeps investors from getting burned.
An investor-focused real estate agent does far more than open doors and write offers. Here is exactly what separates them from a standard residential agent, and why it matters for your returns.
About 1 hour 45 minutes southwest on I-75, under the same Tennessee landlord law, and we work with vetted agents there.
About three hours west on I-40: Tennessee's biggest metro, with vetted investor agents.
About 2 hours 45 minutes north on I-75: a smaller Kentucky college town with vetted agents.
About two hours east over the mountains: an STR-driven market in North Carolina.
Questions investors ask about Knoxville
Is Knoxville a good market for cash-flowing rentals?
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Not at median prices with a mortgage. Typical rent in the Knoxville metro is about 0.48% of home value per month, well under the 1% rule. People and jobs keep coming, but prices have outrun rents. The deals that work are below median: older homes and small multifamily that need work, or a house hack.
Can I run an Airbnb in Knoxville?
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Inside city limits, an investor-owned (non-owner-occupied) STR needs a Type 2 permit, which is only available in non-residential zones like downtown and mixed-use districts. In residential zones you need a Type 1 permit, which requires the property to be your primary residence. Unincorporated Knox County and other cities have their own rules.
Is Tennessee landlord-friendly?
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Generally, yes. There's no cap on security deposits, cities can't impose rent control, and nonpayment cases start with a short written notice before you can file. Knox County follows the state's Uniform Residential Landlord and Tenant Act.
Are student rentals near UT a good idea?
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They can be, with eyes open. University of Tennessee demand is steady, but leases turn over every year, wear and tear is higher, and parking and occupancy rules matter. Budget more for maintenance and vacancy than you would on a family rental.
How do I find an investor-friendly agent in Knoxville?
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Tell us your strategy, budget and target area. We'll look for an investor-focused agent who works Knoxville and fits what you're doing. It's free for investors. If you're open to Chattanooga or Nashville, we already work with vetted Tennessee agents there.
Looking at Knoxville?
Tell us what you're looking for in the Knoxville area and we'll look for an investor-focused agent who fits your strategy. Free for investors.
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