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MarketsTennesseeSevierville

Cap Rate Analysis: Sevierville, TN

Investment metrics, interactive calculators, and data-driven analysis for Sevierville rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $395,000 median price and $1,740/mo median rent
Est. Cap Rate
3.53%
1% Rule
0.44%
Fails
GRM
18.9x
Price / Income
7.3x

Market Data

Median Home Price$395,000
Median Monthly Rent$1,740
Property Tax Rate0.65%
Population50,000
Population Growth1.6% / yr
Median Household Income$53,744
Vacancy Rate5.7%
Annual Appreciation3.1%

Cap Rate Calculator — Sevierville

Pre-filled with Sevierville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.65% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.98%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,782
net operating income
Gross Rent Multiplier
18.9x
High (>15)
1% Rule
0.44%
✗ Fails
Monthly Cash Flow
$982
before debt service
Annual Breakdown
Gross Rental Income$20,880
Less Vacancy−$1,190
Effective Income$19,690
Less Operating Expenses−$7,908
Net Operating Income$11,782
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Cash-on-Cash Return — Sevierville

Factor in financing to see your actual return on invested capital in Sevierville.

$
$98,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.01%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$110,600
$98,750 down + $11,850 closing
Monthly Mortgage
$1,931
on $296K loan
Monthly Cash Flow
$-922
after all expenses
Annual Cash Flow
$-11,068
before taxes
Cash Flow Breakdown
Monthly Rent$1,740
Less Expenses−$731
Less Mortgage−$1,931
Monthly Cash Flow$-922

Is Sevierville a Good Place to Invest in Rental Property?

Sevierville, TN has a population of 50,000 and has been growing at 1.6% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $395,000 paired with median rents of $1,740/mo produces an estimated cap rate of 3.53%.

Property taxes at 0.65% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.7% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 7.3x, homes cost about 7.3 times the local median income of $53,744. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Sevierville is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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