Real Estate Investing in Townsend, Tennessee (37878)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 37878 (Townsend, TN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 40.9% of homes vacant — above national norms.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Townsend, TN (37878)?
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Market Analysis: 37878 Townsend
ZIP 37878 inside Blount County looks affordable on the surface — median value of $233K — but the discount exists for reasons that a careful buyer should understand before committing.
Rent of $1,197/mo on a $233K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 37878 sits below the stated 0.0% once reality is priced in.
The gap between 37878 and stronger Townsend ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Demographically, 37878 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
tilts toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Townsend:
Market Trends
Home Value History (with trend line)
📊 How Does 37878 Compare?
| Metric | 37878 | Townsend | Knoxville, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $232,752 | $318,240 | N/A | $327,001 |
| 5-Year CAGR | 4.7% | 5.8% | N/A | 7.7% |
| Avg Rent | $1,197 | $1,188 | N/A | - |
| Cap Rate | 4.0% | 3.1% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 37878 (Townsend, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $232,752 |
| Monthly Rent | $1,197 |
| Price-to-Rent | 16.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.2% |
| Cap Rate | 4.0% |
| 5-Year IRR | 8.7% |
📈 Home Appreciation
| 1-Year | +5.4% ▲ |
| 3-Year CAGR | +1.1% ▲ |
| 5-Year CAGR | +4.7% ▲ |
| 10-Year CAGR | +7.5% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.0%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 37878
Population: 709
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Nearby Colleges & Universities
Frequently Asked Questions
How strong is the working-renter base in Townsend, TN?
Tenant demand in Townsend, TN is solid. The local workforce $1,197/mo rents across most rental classes.
How landlord-friendly is Townsend, TN?
The landlord environment in Townsend, TN is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
How much does a house cost in Townsend, TN?
Homes in Townsend, TN typically sell near $233K. Prices have moved at a 0.0% 5-year CAGR, which steady long-term demand.
How viable is house hacking in Townsend, TN?
The house hack math a challenging in Townsend, TN. Owner-occupant buyers benefit from the $1,197/mo rents and $233K home values.
How do experienced investors play Townsend, TN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Townsend, TN. The numbers - $233K homes against $1,197/mo rents - support that play.
You know 37878 now. You don’t know where it ranks.
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How 37878 ranks in Knoxville, TN
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