Investment Property Loans in Knoxville, TN

The state Comptroller's 2025 rate table lists $2.1556 per $100 of assessed value for the City of Knoxville and $1.554 for Knox County, a combined $3.7096 inside city limits.

For investors: Parcels just outside the city line pay only the county levy, so the same price can carry a very different tax bill on either side. Confirm each listing's jurisdiction in the Knox County property records before comparing Knoxville cash flow.

Source: Tennessee Comptroller of the Treasury, Division of Property Assessments, 2025 Property Tax Rates (Knox County jurisdictions), Oct 2026

Knox County's adopted 2026-27 budget keeps the county property tax at $1.5540 per $100 of assessed value, shifting three cents from the schools fund to the general fund.

For investors: A flat county rate makes year-one holding costs on a Knoxville purchase easier to project. The City of Knoxville sets its own rate separately, so confirm the current city figure in the city's adopted budget before finalizing an escrow estimate.

Source: Knox County Finance Department, 2026-2027 Adopted Budget, Budget Summary, Jun 2026

Knox County's Property Assessor runs a two-year reappraisal cycle: appraisal teams inspect properties and collect sales data in year one, then new values are set and mailed to owners in year two.

For investors: A two-year cycle means Knoxville values follow recent sales closely, so project taxes on a value near the purchase price rather than the seller's older assessment. Read each value notice and appeal on time if a rental is assessed above what it would sell for.

Source: Knox County Property Assessor, Reappraisal, Oct 2026

Knoxville issues Type 1 short-term rental permits only to owner-occupants in residential districts, one per person, and Type 2 non-owner-occupied permits only in nonresidential districts, two per person or entity.

For investors: A Knoxville neighborhood house bought to run full time as a nightly rental will not qualify. The ordinance still names 2017 districts for Type 2, while today's zoning code calls downtown DK and keeps the CU and SW districts, so confirm a parcel's district before counting short-term income.

Source: Knoxville Code of Ordinances Ch. 16, Art. XV, Short Term Rental Unit Ordinance (Ord. No. O-245-2017), Municode Supplement 81, Secs. 16-602 and 16-613, Oct 2026

Knoxville's short-term rental permit costs $70 for Type 1 or $120 for Type 2, renews yearly for $50 if paid at least 14 business days before expiration, and operating without one draws $50 a day.

For investors: Letting a permit expire forfeits the right to renew and forces a new application, so set reminders early. The Business License and Tax Office has up to 14 business days to act on a complete application, and every listing must display the permit number.

Source: Knoxville Code of Ordinances Ch. 16, Art. XV, Short Term Rental Unit Ordinance (Ord. No. O-245-2017), Municode Supplement 81, Secs. 16-614, 16-616 and 16-632, Oct 2026

Knoxville caps short-term rental guests at two per bedroom plus two, never more than 12, and operators owe the city's 4% hotel occupancy tax, remitted by the 20th of each month.

For investors: Size revenue to the legal guest count, not the beds a listing could hold. Late hotel tax remittances to the city revenue department carry 12% yearly interest plus a 1% monthly penalty, so set up monthly filing from the first booking.

Source: Knoxville Code of Ordinances Ch. 16, Secs. 16-522, 16-524, 16-651 and 16-653 (Municode, Supplement 81), Oct 2026

Knoxville allows one ADU on a lot of at least 5,000 square feet holding one house, capped at 40% of the main home's floor area and two bedrooms; the owner must occupy one unit.

For investors: The owner-occupancy rule means an investor cannot add a backyard rental to a Knoxville house it does not live in. An owner who lives on site can, but must provide one off-street parking space and keep a detached ADU out of the front yard.

Source: Knoxville Zoning Code (Code of Ordinances App. B), Art. 10.3.B, Accessory Dwelling Unit (Municode, Supplement 81), Oct 2026

In Knoxville's AE and shaded X zones with base flood elevations, work reaching 50% of a home's value within five years is substantial improvement, requiring the lowest floor and utilities one foot above that elevation.

For investors: The five-year look-back adds rehab costs across separate permits, so a staged renovation of a floodplain house can still trip the elevation rule. Check the FEMA map, including shaded X areas, before buying a Knoxville fixer near one of the city's creeks.

Source: Knoxville Code of Ordinances Ch. 12, Flood Damage Prevention and Control (definitions and residential construction standards), Municode Supplement 81, Oct 2026

FEMA's October 2026 CRS list rates the City of Knoxville Class 6, worth 20% off eligible flood insurance premiums, while the separately listed Knox County community is Class 8 at 10%.

For investors: Knoxville's current Class 6 rating dates from October 2019, so a flood policy inside city limits carries a bigger community discount than one just across the line in the county. Ask the insurance agent to confirm the discount appears on the quote.

Source: FEMA, CRS Eligible Communities, October 1, 2026 effective date (Excel list linked from FEMA's Community Rating System page), Oct 2026

Knoxville Utilities Board adds a $35 connection fee to the first bill for new service and says a $300 utility deposit may be required to start service.

For investors: Each restart at a vacant Knoxville rental adds another connection fee, so decide whether service moves into the owner's name between tenants or stays on. Mention the possible deposit to incoming tenants so it does not delay move-in day.

Source: Knoxville Utilities Board (KUB), Start or Stop Service, Oct 2026

The University of Tennessee, Knoxville reported record fall 2026 enrollment of 41,287 students, up 2.1%, with a record first-year class of 7,205.

For investors: A growing flagship campus keeps demand firm in Fort Sanders and other neighborhoods near campus. Student leases run on the academic calendar, so time purchases and turnovers to the August move-in rather than the middle of a semester.

Source: University of Tennessee, Knoxville News, Record Enrollment and Retention Reflect UT's Exceptional Student Experience, Sep 2026

Oak Ridge National Laboratory, in neighboring Oak Ridge, says it is home to more than 7,500 scientists, engineers, technicians and support staff from more than 70 nations.

For investors: Lab staff, contractors and visiting researchers often look for furnished housing for a few months. Knoxville's short-term rental ordinance covers stays of up to 30 consecutive days, so a furnished lease of a month or longer is a different product from a permitted nightly rental.

Source: Oak Ridge National Laboratory, Overview, Oct 2026