CALCMONEY // HOME AFFORDABILITY // TN // KNOXVILLE
How much house can you afford in Knoxville? Based on local median home prices, current TN mortgage rates, and Knoxville property tax data.
$310,000
$1,954/mo
$83,728/yr
$196,060
Monthly housing costs of $1,954 represent 40.4% of Knoxville's median gross monthly income ($4,833/mo). At 40.4%, median-income buyers in Knoxville are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $310,000 |
| Down Payment (20%) | $62,000 |
| Loan Amount | $248,000 |
| Monthly PI Payment | $1,633 |
| Monthly Property Tax | $191 |
| Monthly Insurance Est. | $129 |
| Total Monthly PITI | $1,954 |
| Housing Cost % of Income | 40.4% |
| Required Income (28% rule) | $83,728/yr |
| Max Affordable Home | $196,060 |
$10,850
$2,502/mo
Knoxville Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $310,000 | Knoxville city median |
| Down Payment (20%) | $62,000 | Conventional loan |
| Monthly PITI | $1,954 | 6.9% rate, 30yr fixed |
| Required Income (28% rule) | $83,728 | Annual gross |
| Max Affordable Home | $196,060 | Based on median income |
| FHA Down (3.5%) | $10,850 | Minimum FHA |
| Housing Cost % of Income | 40.4% | Median income: $58,000/yr |
| Property Tax Rate | 0.74% | $2,294/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Knoxville is $310,000, with a local 30-year mortgage rate of 6.9%. A buyer putting 20% down carries a loan of $248,000, generating a monthly P&I payment of $1,633. Adding property taxes ($191/mo) and homeowners insurance ($129/mo) brings total monthly PITI to $1,954.
Knoxville's property tax rate of 0.74% is among the lower rates in the country, which improves overall affordability by keeping total PITI closer to the principal and interest payment alone. On the Knoxville median home, that is $191/month, or $2,294 per year.
Tennessee has no state income tax, improving effective take-home pay for Knoxville residents and giving buyers additional capacity relative to equally-priced homes in high-tax states.
Using the 28% rule, a household earning Knoxville's median income of $58,000/year can afford up to $1,353/month in total housing costs. Based on Knoxville's mortgage rate of 6.9% and property tax rate of 0.74%, that translates to a maximum affordable home price of approximately $196,060 with 20% down on a 30-year loan.
To afford the median Knoxville home priced at $310,000, you need an annual gross income of approximately $83,728. Total monthly housing costs (principal and interest of $1,633, property taxes of $191, and insurance of $129) come to $1,954/month, which equals 28% of the required income.
At the median home price of $310,000 and median household income of $58,000, the total monthly housing cost of $1,954 represents 40.4% of gross monthly income. This is well above the standard 28% threshold, making Knoxville a challenging market for buyers at median income.
A conventional 20% down payment on the median Knoxville home of $310,000 is $62,000. An FHA loan requires just 3.5% down — $10,850 — but adds mortgage insurance of roughly $212/month, bringing total FHA payments to $2,502/month.
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