Cash Flow Investing in Knoxville, TN

Cash Flow Score: 4.3/10Ranked #22 of 52 markets

Data-driven cash flow analysis for Knoxville, TN — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

Cash Flow Score:4.3
Rent-to-Price Ratio(30%)
0.52%2.6
Cap Rate(30%)
5.8%3.5
Low Vacancy(20%)
8.1%4.9
Low Property Taxes(20%)
0.68%7.7

Key Metrics for Cash Flow

Cap Rate

5.8%

Moderate

Rent-to-Price

0.52%

Below 1% rule

Vacancy Rate

8.1%

Elevated

Property Tax

0.68%

Very low

Cash Flow Investment Thesis

Knoxville offers Tennessee tax advantages with strong University of Tennessee-driven rental demand. Low property taxes boost effective returns compared to similar-sized markets.

How Knoxville Compares

RankCityCash Flow ScoreCap RateMedian Price
#18Boise, ID4.64.5%$420,000
#19Cincinnati, OH4.57.0%$195,000
#20Columbus, OH4.46.8%$240,000
#21Charlotte, NC4.35.6%$340,000
#22Knoxville, TN4.35.8%$270,000
#23Jacksonville, FL4.26.4%$285,000
#24Tampa, FL4.15.5%$350,000

Showing markets ranked near Knoxville for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($1,400/mo)$16,800
Less: Vacancy (8.1%)-$1,361
Less: Property Tax (0.68%)-$1,836
Less: Insurance (~0.5%)-$1,350
Less: Maintenance (~1.5%)-$4,050
Estimated NOI$8,203
Implied Cap Rate3.0%

Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.

Frequently Asked Questions

What is the cash flow score for Knoxville, TN?

Knoxville, TN scores 4.3 out of 10 on our cash flow score, ranking #22 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.

Is Knoxville a good city for cash flow investing?

Knoxville, TN ranks #22 for cash flow investing — a solid mid-tier market with a score of 4.3/10. The median home price is $270,000 with a 5.8% average cap rate.

What is the average cap rate in Knoxville?

The average cap rate in Knoxville, TN is 5.8%. The median home price is $270,000 with a median monthly rent of $1,400, resulting in a rent-to-price ratio of 0.52%.

What are the property taxes in Knoxville?

The effective property tax rate in Knoxville, TN is 0.68%. On a $270,000 property, that translates to approximately $1,836 per year in property taxes.

How does Knoxville compare to other cash flow markets?

Among our 52 tracked markets, Knoxville, TN ranks #22 for cash flow investing. It falls in the middle of the pack for this strategy.

Does Knoxville meet the 1% rule?

Knoxville, TN has a rent-to-price ratio of 0.52%, which falls significantly below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.

Run Your Own Numbers for Knoxville

Use our free calculators pre-filled with Knoxville, TN market data, or adjust the numbers for your specific deal.