Home Affordability in Knoxville, TN
The median home price in Knoxville is $265,000 with a median household income of $42,120. Housing is significantly stretched relative to local incomes.
Median Home Price
$265,000
Median Income
$42,120
Price-to-Income Ratio
6.3x
Est. Affordable Home
$164,000
Property Tax Rate
0.69%
Annual Property Tax
$1,829
Sales Tax Rate
9.25%
Cost of Living Index
87
Buying a Home in Knoxville
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $42,120 in Knoxville can afford a monthly housing payment of approximately $983. This translates to a home price of roughly $164,000, which is below the median home price of $265,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Knoxville would be approximately $1,829 per year ($152/month) at the effective rate of 0.69%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $7,950 | $257,050 | Yes |
| 5% | $13,250 | $251,750 | Yes |
| 10% | $26,500 | $238,500 | Yes |
| 20% | $53,000 | $212,000 | No |
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