Key Takeaways
- Location determines offer range: Premium neighborhoods like Bearden get 80-85% of market value; value areas see 70-75%
- Different investors target different areas: Flippers love appreciating neighborhoods; buy-and-hold investors seek cash flow
- UT proximity matters: Neighborhoods near campus attract strong rental investor interest
- Competition closes the gap: Even in lower-tier neighborhoods, multiple offers outperform single-buyer deals
Not all Knoxville neighborhoods are equal in investors' eyes. Some areas command 85% of market value in cash offers, while others hover around 70%. The difference can mean $30,000-$50,000 on the same priced home.
Understanding where your property falls—and why—gives you leverage when evaluating offers. This guide breaks down 12 key Knoxville neighborhoods by investor appeal.
What Makes Knoxville Attractive to Investors?
University of Tennessee
28,000+ students create consistent rental demand. Properties near campus enjoy 95%+ occupancy rates and command premium rents. Investors targeting student housing pay more for well-located properties.
No State Income Tax
Tennessee's tax structure means investors keep more rental income and capital gains. This attracts out-of-state investors who can afford to pay more because their returns are higher.
Affordability
At 31% below the national median, Knoxville offers entry points that more investors can afford. Lower prices mean more competition for properties.
Oak Ridge Corridor
14,600+ federal jobs create stable, high-paying employment. Neighborhoods with easy Oak Ridge commutes attract investors targeting professional tenants.
Smoky Mountain Proximity
Gateway to America's most-visited national park. Some investors target properties with short-term rental potential for Smokies visitors.
Tier 1: Premium Neighborhoods (80-85% Offers)
Bearden (37919)
Median price: $385,000
Cash offer range: 80-85% of market value
Days on market: 45 days average
Why investors love it: Bearden is Knoxville's most established walkable neighborhood. Strong retail corridor, quality restaurants, and proximity to West Town Mall create rental demand from young professionals. Properties here command premium rents and appreciate steadily.
Investor types: Buy-and-hold investors, some flipping activity
Sequoyah Hills (37919)
Median price: $450,000
Cash offer range: 80-85% of market value
Days on market: 50 days average
Why investors love it: Historic waterfront neighborhood with Tennessee River access. Large lots, established trees, and architectural character. Limited inventory keeps prices firm. Investors here are typically long-term hold with quality tenant focus.
Investor types: High-end buy-and-hold, estate purchases
Farragut (37934)
Median price: $475,000
Cash offer range: 80-85% of market value
Days on market: 55 days average
Why investors love it: Top-rated schools and family-friendly suburban appeal. Consistent appreciation and stable tenant base. Properties rarely lose value, making it a safe investment.
Investor types: Conservative buy-and-hold, family rental specialists
West Knoxville (37922/37923)
Median price: $360,000
Cash offer range: 78-83% of market value
Days on market: 48 days average
Why investors love it: Largest buyer pool in Knoxville. Cedar Bluff corridor provides commercial amenities. Diverse housing stock from starter homes to executive properties. Multiple exit strategies for investors.
Investor types: All types—flippers, buy-and-hold, rental investors
Tier 2: High-Demand Neighborhoods (75-80% Offers)
Hardin Valley (37932)
Median price: $380,000
Cash offer range: 76-80% of market value
Days on market: 52 days average
Why investors love it: Knoxville's fastest-growing area. New schools, family demand, and continued development. Investors see appreciation potential as the area matures.
Investor types: Growth-focused investors, family rental specialists
Powell (37849)
Median price: $320,000
Cash offer range: 75-80% of market value
Days on market: 55 days average
Why investors love it: Family-friendly suburb with good schools and affordable prices. Solid rental demand from families priced out of Farragut. Steady appreciation without volatility.
Investor types: Buy-and-hold rental investors, first-time investor-friendly
North Knoxville (37917)
Median price: $285,000
Cash offer range: 75-80% of market value
Days on market: 58 days average
Why investors love it: Emerging area with urban proximity. Development pressure from downtown revitalization. Investors betting on gentrification see upside potential.
Investor types: Flippers, value-add investors, patient buy-and-hold
Cedar Bluff Area (37923)
Median price: $340,000
Cash offer range: 75-79% of market value
Days on market: 50 days average
Why investors love it: Commercial corridor with employment centers. Strong rental demand from young professionals working nearby. Convenient location commands premium rents.
Investor types: Buy-and-hold investors targeting professionals
Tier 3: Value Neighborhoods (70-75% Offers)
South Knoxville (37920)
Median price: $275,000
Cash offer range: 70-75% of market value
Days on market: 62 days average
Why investors love it: Gentrification in early stages. Urban Farm, Island Home, and Sevier Avenue development creating momentum. Lower entry prices with significant upside potential for patient investors.
Investor types: Flippers betting on gentrification, value-add buy-and-hold
Pro tip: Focus on areas near Island Home or Chapman Highway corridor for best appreciation potential.
Fountain City (37918)
Median price: $265,000
Cash offer range: 70-75% of market value
Days on market: 60 days average
Why investors love it: Older housing stock creates renovation opportunities. Established neighborhood character. Investors buy dated homes, renovate, and either flip or hold as rentals.
Investor types: Renovation flippers, BRRRR investors (Buy, Rehab, Rent, Refinance, Repeat)
Halls (37938)
Median price: $290,000
Cash offer range: 70-75% of market value
Days on market: 65 days average
Why investors love it: North Knox affordability with family appeal. Cash flow focus rather than appreciation. Reliable rental demand from working families.
Investor types: Cash flow investors, Section 8 specialists
Karns (37931)
Median price: $295,000
Cash offer range: 70-75% of market value
Days on market: 63 days average
Why investors love it: Growing suburb with good schools. Affordable entry for families. Steady rental demand without the premium prices of Hardin Valley.
Investor types: Buy-and-hold investors, family rental specialists
How to Use This Information When Selling
Know Your Tier Before Getting Offers
If your home is in Bearden (Tier 1), you should expect offers of 80-85% of market value. An offer of 70% is below market for your area—push back or keep shopping.
Demand Tier-Appropriate Offers
If you're in a Tier 1 neighborhood and receive a Tier 3 offer, that's a red flag. The buyer is either inexperienced or trying to lowball you.
Competition Closes the Gap
Even in Tier 3 neighborhoods, multiple competing offers outperform single-buyer deals. The difference between a 70% offer and 76% offer on a $290,000 home is $17,400.
What Will Investors Pay for YOUR Knoxville Neighborhood?
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