House Hacking Investing in Knoxville, TN
Data-driven house hacking analysis for Knoxville, TN — score breakdown, key investment metrics, and how it compares to other markets.
Last updated: May 2026
Score Breakdown
Key Metrics for House Hacking
Median Price
$270,000
FHA 3.5% down: $9,450
Median Rent
$1,400/mo
Per-unit rental income
Vacancy Rate
8.1%
Elevated
Pop. Growth
+5.5%
5-year trend
House Hacking 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
| Rank | City | House Hack Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #24 | Atlanta, GA | 4.8 | 5.9% | $320,000 |
| #25 | Birmingham, AL | 4.7 | 8.5% | $125,000 |
| #26 | Houston, TX | 4.7 | 6.3% | $265,000 |
| #27 | Knoxville, TN | 4.7 | 5.8% | $270,000 |
| #28 | Jacksonville, FL | 4.6 | 6.4% | $285,000 |
| #29 | Sacramento, CA | 4.6 | 4.7% | $450,000 |
| #30 | Little Rock, AR | 4.5 | 8.3% | $150,000 |
Showing markets ranked near Knoxville for this strategy.
Quick Math: Estimated Annual Return
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 house hack score for Knoxville, TN?
Knoxville, TN scores 4.7 out of 10 on our house hack score, ranking #27 out of 52 markets we track. Weighted composite: affordable entry price (30%), rent-to-price ratio (25%), low vacancy (20%), population growth (15%), livability/income (10%). Scale 0–10.
Is Knoxville a good city for house hacking investing?
Knoxville, TN ranks #27 for house hacking investing with a score of 4.7/10. While not a top-ranked market for this strategy, it may have strengths in other investing approaches.
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 house hacking markets?
Among our 52 tracked markets, Knoxville, TN ranks #27 for house hacking investing. It falls in the middle of the pack for this strategy.
Can I FHA-finance a house hack in Knoxville?
With a median home price of $270,000, most 2-4 unit properties in Knoxville, TN should fall within FHA loan limits. An FHA loan with 3.5% down would require approximately $9,450 as a down payment. Rental income from additional units (median $1,400/month each) can significantly offset your mortgage payment.
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.
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