Photograph — autumn mountains at sunset — © Jonathan Ross Photography, used with permission.
Knox County is the center of East Tennessee — Knoxville sits where I-40 and I-75 meet on the Tennessee River, an hour from the Smokies. For lending purposes the numbers here are the national baseline figures, not the Nashville-metro ones: the FHA floor, the standard conforming limit, and THDA income caps set for the Knoxville area. The county is also unusual in having just two cities: Knoxville and Farragut. Everything else — Powell, Halls, Karns, Mascot and the rest — is unincorporated, which shapes both the tax bill and USDA eligibility. This page lays out what actually applies.
Valor Mortgage is an independent broker based in Springfield, Tennessee, licensed to originate across the whole state. Christopher Armantrout (NMLS #1210804) has financed Tennessee homes since 2015; Knox County files run by phone, text and a secure online application, with closing at a local title company — the one you or your agent choose. For how we work with Knoxville buyers specifically, see our Knoxville mortgage broker page.
Christopher Armantrout — Valor Mortgage
615.671.9178 | christopher@valor.mortgage
724 S Main St, Springfield, TN 37172 | Sun–Thu 8am–5pm | Fri 8am–3pm
2026 Loan Limits in Knox County
Knox County is the core of HUD’s Knoxville, TN metropolitan area, which also takes in Anderson, Blount, Loudon, Roane, Union and Grainger counties among others. HUD sets FHA limits from local median prices, and the Knoxville-area median is low enough that the county sits at the floor that applies to every lower-cost county in the country.
| Program | Knox County 2026 | Nashville-metro counties | Notes |
|---|---|---|---|
| FHA | $541,287 | $1,029,250 | National FHA floor |
| Conventional / conforming | $832,750 | $1,029,250 | National baseline |
| VA | No limit | No limit | Entitlement governs |
| USDA | No stated limit | No stated limit | Income and area tests instead |
FHA and conforming figures: HUD FHA Mortgage Limits lookup, Knox County TN, limit year CY2026, last revised 1 January 2026. Retrieved 9 October 2026. HUD records a median sale price of $383,000 for the Knoxville TN MSA against $895,000 for the Nashville MSA.
Where the floor starts to bind
$541,287 is not a Knoxville-specific calculation — it is the minimum FHA limit nationwide, and Knox County does not clear the threshold to go above it. With an area median of $383,000 it covers most of what first-time buyers here look at.
In Farragut, West Knoxville and on lakefront property along Fort Loudoun Lake, though, prices can run past $541,287 for FHA and past $832,750 for conventional. Above those lines the choice is a larger down payment, a jumbo loan, or VA with full entitlement, which has no limit at all.
Multi-unit limits for Knox County in 2026 — FHA: $693,050 duplex, $837,700 triplex, $1,041,125 fourplex. Conforming: $1,066,250, $1,288,800 and $1,601,750. The same limits apply in every neighbouring county, including Sevier and Jefferson, which sit in their own metro areas.
USDA Eligibility in Knox County
USDA Rural Development financing offers no down payment for qualified buyers, and unlike VA it is not limited to veterans — but the property has to sit inside an eligible area. In Knox County about 53% of the land area is eligible, and because most of the county is unincorporated, that includes several communities most buyers think of as suburbs.
| City / community | USDA eligible? | What the map shows |
|---|---|---|
| Knoxville | No | All 99 sq mi of the city sits inside the ineligible area. |
| Farragut | No | Entirely inside the ineligible area. |
| Halls | Split | About 41% eligible; the line runs through the community. Check the specific address. |
| Powell | Yes | Essentially all eligible, despite being a few miles from Knoxville. |
| Karns, Mascot | Yes | Entirely eligible. |
| Rest of the unincorporated county | Mostly | Roughly 84% of the unincorporated land north of Knoxville and 78% to the east is eligible; to the west and south, toward Farragut, it is closer to half. |
Source: USDA Rural Development, Single Family Housing ineligible-area boundaries (RHS SFH/MFH layer), grid-sampled against U.S. Census Bureau TIGERweb county, city and census-designated-place boundaries. Computed 9 October 2026; the sampling inputs and results are retained and available on request.
The neighbours are more eligible than Knox
Several cities that function as Knoxville suburbs sit entirely inside the eligible area: Maryville and Alcoa in Blount County, Lenoir City in Loudon County, and Clinton and Norris in Anderson County. For a buyer who wants zero down and a commute into Knoxville, the county line can matter more than the distance.
USDA eligibility is not the same thing as a city line, and it has no relationship to zip codes — a Powell or Knoxville mailing address can sit on either side. Eligibility has to be confirmed by street address before you write an offer. Have Christopher check yours →
USDA income limits in the Knoxville area
USDA caps household income by area and household size on top of the geographic test. For the Guaranteed program the current cap in Knox County is $122,800 for a household of one to four people and $162,100 for five to eight. Both tests have to pass, so ask us to run your household against the current published limit before you commit to the program.
Source: USDA Rural Development Income Eligibility calculator, Knox County TN, Section 502 Guaranteed limits in effect 9 October 2026.
Property Taxes in Knox County
Tennessee assesses residential property at 25% of appraised value. Knox County levies $1.5540 per $100 of assessed value everywhere in the county. Knoxville adds $2.1556 on top. Farragut levies no city property tax, so a Farragut home — like a home in unincorporated Powell, Halls or Karns — pays the county rate alone.
Worked example — a $300,000 home
Assessed at $75,000. Outside Knoxville: $75,000 ÷ 100 × 1.5540 = $1,165.50 a year, $97.12 a month.
Inside Knoxville: $3.7096 combined = $2,782.20 a year, $231.85 a month. That is $1,616.70 a year, or $134.72 a month, for the city line alone — more than doubling the bill.
In Knox County the city line is the single biggest tax variable, and the cheaper side of it is also the side where USDA can work. Run your own: (purchase price × 0.25) ÷ 100 × combined rate = annual tax
| Jurisdiction | City rate | County rate | Combined | Tax on a $300,000 home |
|---|---|---|---|---|
| Unincorporated county | — | $1.5540 | $1.5540 | $1,165.50 / yr · $97.12 / mo |
| Knoxville | 2.1556 | $1.5540 | $3.7096 | $2,782.20 / yr · $231.85 / mo |
| Farragut | None | $1.5540 | $1.5540 | $1,165.50 / yr · $97.12 / mo |
Rates per $100 of assessed value. Source: Tennessee Comptroller of the Treasury, Property Tax Rates, tax year 2025 — the most recent year the state has published, and unchanged from tax year 2024. Farragut has no city property tax rate on the Comptroller’s schedule. Retrieved 9 October 2026. Confirm with the Knox County Trustee and your city before relying on them for a closing figure.
Tennessee has no state income tax, which is part of why a payment that looks tight on paper often works here once real take-home pay is documented.
Down Payment Assistance for Knox County Buyers
THDA sets assistance limits by county. Knox’s income caps are set for the Knoxville area and are lower than the Nashville-metro counties. Three of its neighbours are targeted countywide and carry higher caps.
| THDA limit | Knox / Anderson / Blount / Loudon | Grainger / Jefferson | Union | Nashville-metro counties |
|---|---|---|---|---|
| Acquisition cost limit | $500,000 | $500,000 | $500,000 | $500,000 |
| Income limit — 1–2 persons | $103,700 | $113,880 | $124,440 | $139,320 |
| Income limit — 3 or more persons | $119,255 | $132,860 | $145,180 | $162,540 |
Source: THDA Acquisition Cost & Income Limits by County, Great Choice and HFA Advantage mortgage loan programs, effective 1 August 2026. Retrieved 9 October 2026.
Knox has targeted census tracts; Union, Grainger and Jefferson are targeted countywide
THDA flags Knox County as containing targeted census tracts, where the first-time homebuyer requirement is waived — decided by the specific property address, so a repeat buyer in the right part of Knoxville can still use Great Choice. Anderson and Blount have targeted tracts too.
Union, Grainger and Jefferson counties are targeted in their entirety, which waives the first-time requirement everywhere. Union’s caps, $124,440 and $145,180, are among the highest in the state. If your household is between the two sets of limits, the county line is a real variable in your search.
THDA’s Homeownership for the Brave track offers a reduced rate for military, veterans, reservists, National Guard and surviving spouses. For eligible buyers we compare it side by side with a VA loan, which has no loan limit and no monthly mortgage insurance — and which, unlike USDA, works at a Knoxville or Farragut address.
Ridges, Sinkholes, Lakes and Older Homes
Knox County’s ridge-and-valley terrain, TVA lakes and century-old neighbourhoods each bring issues that kill closings late when nobody raises them early.
Sinkholes and karst
Much of East Tennessee sits on limestone, and sinkholes are a known feature of Knox County. They show up on surveys, inspections and sometimes appraisals. If the property has a depression, a drainage issue or a recorded sinkhole, raise it before you are under contract, not after the inspection.
Flood zones and TVA shoreline
The Tennessee River, Fort Loudoun Lake and creeks such as Beaver Creek and Third Creek all carry FEMA special flood hazard areas. A home inside one needs flood insurance for any federally backed mortgage. Docks and other shoreline structures on TVA reservoirs need TVA approval — ask the seller for the permit early.
Older homes near downtown
Knoxville’s older neighbourhoods have many homes built before 1978. FHA and VA both require chipping or peeling paint on homes of that age to be corrected before closing. Agree with the seller early on who fixes it and when.
Student rentals and condos near campus
Around the University of Tennessee, many homes and condos are rentals. For an investment purchase, a DSCR loan qualifies on the property’s rent rather than your income. For an owner-occupied FHA or VA loan on a condo, the building itself has to meet program approval rules — check that before you fall in love with a unit.
What a Knox County Purchase Actually Costs
We are not quoting an interest rate on a web page. Everything around the rate, though, is knowable now.
| Cost component | What to expect in Knox County |
|---|---|
| Down payment | USDA 0% (outside Knoxville and Farragut) · VA 0% · FHA 3.5% · conventional 3–5% for many first-time buyers. Which of these you can use is decided partly by the address, per the USDA section above. |
| Property tax | $97.12 a month on a $300,000 home outside Knoxville, $231.85 inside it. |
| Homeowners and flood insurance | East Tennessee has real severe-storm exposure, and homes near the river, lakes and creeks may need flood insurance as well. Get real quotes early — do not let anyone plug in a placeholder. |
| Mortgage insurance | Handled differently by every program: USDA has an upfront guarantee fee plus an annual fee, FHA has upfront and annual MIP, VA has a one-time funding fee with exemptions, conventional uses PMI that comes off with equity. This line alone can flip which program is cheapest for you. |
| Closing costs | Tennessee recordation and transfer taxes, title work, appraisal, and prepaid escrows. |
Find Out What Your Address Qualifies For
USDA eligibility outside Knoxville, the city tax difference, flood-zone status, THDA targeted-tract status and which program is cheapest for your file — checked for your specific property. Christopher will review it personally.
Neighbouring Counties
Anderson, Blount, Loudon, Roane, Union and Grainger share the Knoxville metro area and carry the same $541,287 FHA and $832,750 conforming limits; Sevier and Jefferson sit in their own metro areas with identical limits. THDA treats Union, Grainger and Jefferson as targeted countywide, and Maryville, Alcoa, Lenoir City, Clinton and Sevierville are all USDA-eligible.
Frequently Asked Questions — Knox County Homebuyers
What is the FHA loan limit in Knox County, TN for 2026?
$541,287 for a one-unit property — the national FHA floor. Knox County is the core of HUD’s Knoxville, TN metropolitan area, where HUD records a median sale price of $383,000, so the county does not clear the threshold for a higher limit. The 2026 conforming limit is $832,750, the national baseline. VA loans have no limit with full entitlement.
Is Knox County eligible for a USDA loan?
About half of it. Roughly 53% of Knox County’s land area is USDA-eligible. Knoxville and Farragut are effectively ineligible, but Powell, Karns and Mascot are eligible and Halls is split. Next door, Maryville, Alcoa, Lenoir City and Clinton are entirely eligible. Eligibility is set by street address, so it has to be confirmed on the specific property.
What is the property tax rate in Knox County, Tennessee?
The county rate is $1.5540 per $100 of assessed value and Tennessee assesses homes at 25% of appraised value. Inside Knoxville the city adds $2.1556 for a combined $3.7096. Farragut levies no city property tax, so a Farragut home pays the county rate only. On a $300,000 home that is $1,165.50 a year outside Knoxville and $2,782.20 inside it. Rates shown are the Tennessee Comptroller’s published 2025 figures.
What are the THDA income limits for Knox County?
As of 1 August 2026, THDA’s Great Choice and HFA Advantage limits for Knox County are $103,700 for a one or two person household and $119,255 for three or more, with a $500,000 acquisition cost limit. Knox contains targeted census tracts where the first-time homebuyer requirement is waived. Union County, to the north, is targeted countywide with the highest caps in the region: $124,440 and $145,180.
Does Valor Mortgage work with buyers in Knoxville?
Yes. Valor Mortgage is licensed to originate residential mortgages anywhere in Tennessee, and Knox County files are handled the way most of our files are — by phone, text and a secure online application, with closing at a local title company — the one you or your agent choose.
Where These Numbers Come From
Every figure on this page is taken from the agency that publishes it, not from an aggregator. Here is the audit trail.
| Figure | Source | As of |
|---|---|---|
| FHA and conforming limits | HUD FHA Mortgage Limits, Knox County TN (and neighbouring counties), CY2026 | Revised 1 Jan 2026 |
| USDA eligible areas | USDA Rural Development ineligible-area boundaries, grid-sampled against Census TIGERweb city and census-designated-place boundaries | Computed 9 October 2026 |
| USDA income limits | USDA Rural Development Income Eligibility calculator, Knox County | 9 October 2026 |
| County and city tax rates | Tennessee Comptroller of the Treasury, Property Tax Rates | Tax year 2025 |
| Assessment ratio (25%) | Tennessee Code Ann. § 67-5-801 | Current statute |
| THDA limits | THDA Acquisition Cost & Income Limits by County | Effective 1 Aug 2026 |
| VA — no loan limit | Blue Water Navy Vietnam Veterans Act of 2019 | Eff. 1 Jan 2020 |
Last updated: 9 October 2026. Loan limits are reset each November for the following calendar year. THDA and USDA limits change periodically. Tennessee property tax rates change after reappraisal cycles. We re-check every figure on this page on that schedule.
Valor Mortgage — Locally Owned, Tennessee Licensed
Christopher Armantrout | 724 S Main St, Springfield, TN 37172
Christopher Armantrout NMLS #1210804 | Valor Mortgage, LLC is powered by Encore Lending Group, LLC NMLS #1249911 | Equal Housing Opportunity | Licensed in Tennessee
724 S Main St, Springfield, TN 37172 | 615.671.9178 | christopher@valor.mortgage
All figures on this page are estimates for general information and are not an offer or a commitment to lend. Loan limits, program limits, tax rates and USDA eligibility boundaries are set by the agencies named above and change without notice; every figure must be verified for your specific property and household before you rely on it. This is not a commitment to lend. All loans subject to credit approval, income verification, and property appraisal. Programs subject to change without notice.
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