Rent vs buy in Knoxville, TN
Typical rent is $1,701 a month, and a typical home in Knoxville, Tennessee costs $368,965.
Over 7 years, renting comes out $10k ahead
Using today's mortgage rate and 20% down, the calculation starts with Knoxville's typical rent and home value. The break-even point arrives in year 9.
An opinion, clearly labeled, with the math shown. These figures are estimates, not quotes. The stamp changes when you change a number.
- Renting leads by
- $10k after 7 years
- Break-even point
- Year 9 when owning catches up
- Actual cost of owning
- $3,124 each month year 1, against $1,701 rent
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Is it cheaper to rent or buy in Knoxville?
Renting costs $10,013 less over 7 years when you include the money you receive when you sell. For the first 8 years, renting costs less. In year 9, owning catches up.
Renting. Owning. Net cost to this point, by year.
Average rent compared with mortgage payments in Knoxville
At Knoxville's typical price, year 1 includes more costs than just rent and a mortgage payment. Here are all the monthly expenses.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,701 | All of it, every month |
| Mortgage payment | $2,012 | $1,773 of it is interest in year 1 |
| Property tax | $197 | 0.64% of the value a year |
| Insurance | $93 | Census median for the city |
| Upkeep | $307 | 1% of the value a year |
| Owning, cash out | $2,609 | $239 of it builds equity |
| Lost return on the down payment | $600 | At 8.3% a year, this is what the cash would earn. |
| Buying costs, spread out | $154 | 3.5% of the price over 7 years |
| True cost of owning | $3,124 | After subtracting the equity part from cash out, add the two lines above. |
The figures behind Knoxville's result
- Typical value of a homeZillow ZHVI, September 2026
- $368,965
- Typical rentZillow data: ZORI, September 2026
- $1,701 each month
- Down payment: 20% avoids private mortgage insurance, which isn't included in the engine's calculations.
- 20%
- Growth in home pricesFHFA house price index, Tennessee, 1995 to 2025
- A yearly rate of 4.7%
- Rent growthYearly change in CPI rent of primary residence, 2006 to 2026
- A yearly rate of 3.5%
- Savings return40% 10-year Treasuries and 60% S&P 500 with dividends, rebalanced yearly, 1928 to 2025
- 8.3% yearly
- Property tax data: Census ACS 2020-2024, Knoxville
- That's 0.64% of the value
- Home insurance data: Census ACS 2020-2024, Knoxville
- $93 each month
- Maintenance costFannie Mae, the low end of 1% to 4%
- Each year, 1% of value
- Purchase expensesFreddie Mac, midpoint between 2% and 5%
- Percent of price: 3.5%
- Sale costs: Agent commission plus closing costs
- 6% of the price.
What would change the Knoxville result?
Each line shows the threshold that changes Knoxville's 7-year verdict while all other factors stay the same.
Renting comes out ahead when
- Home price growth stays below 5.0% a year. For this calculation, we apply 4.7%, Tennessee's long-run rate.
- A mortgage rate above 6.76% remains in effect.
- For a similar home, monthly rent comes to under $1,810 (the local typical rent is $1,701).
- Before year 9, you move.
Buying comes out ahead when
- Home prices increase by more than 5.0% a year.
- You lock in a mortgage rate under 6.76%, while today's is 7.24%.
- You'd pay over $1,810 each month to rent the same home.
- You remain there for 9 years or more.
Knoxville compared with the other 812 cities
| Measure | Knoxville | Median city |
|---|---|---|
| Typical home value | $368,965 | $422,451 |
| Typical rent | $1,701 /mo | $1,837 /mo |
| Price-to-rent ratio | 18.1 (#428 of 813) | 18.5 |
| Home prices, last 10 years | 8.4% a year | 6.2% a year |
| Rents, last 5 years | 4.7% a year | 4% a year |
| Property tax | 0.64% | 0.87% |
| Households that rent | 53% | 42% |
Data from: Zillow ZHVI, ZORI, Census ACS 2020-2024.
More cities across Tennessee
- Rent. Nashville, TN. Renting comes out ahead by $24k.
- Buy. Memphis, TN. Buying comes out ahead by $36k.
- Rent. Chattanooga, TN. Renting comes out ahead by $11k.
- Rent. Clarksville, TN. Renting comes out ahead by $19k.
- Rent. Murfreesboro, TN. Renting comes out ahead by $36k.
- Rent. Franklin, TN. Renting comes out ahead by $204k.
- Buy. Johnson City, TN. Buying comes out ahead by $4k.
- Buy. Jackson, TN. Buying comes out ahead by $25k.
- Rent. Hendersonville, TN. Renting comes out ahead by $77k.
- Renting. In Smyrna, TN, renting wins by $19k.
- Renting wins by $45k in Spring Hill, TN.
- Toss-up in Kingsport, TN, with buying ahead by $3k.