Knox (KY) Investor Pulse Report (2026-Q1)

In Knox County, investors hold 608 single-family properties, representing 11.0% of the total 5,503 SFRs in the market. This establishes a significant, yet not overwhelming, investor presence in the local housing landscape.

The ownership structure is overwhelmingly dominated by individual investors, who own 567 properties, or 93.3% of the investor-owned portfolio. In contrast, company-owned properties number just 45, making up the remaining 7.4%.

This individual dominance is also reflected in the entity count, with 767 individual landlords compared to only 37 company entities. This highlights a highly fragmented market built on small-scale investment rather than large corporate ownership.

The financial profile of these holdings shows a strong preference for cash ownership. A total of 511 properties are owned outright, more than five times the 97 properties that are financed. This suggests that many local investors operate with high liquidity and low leverage.

The portfolio's primary function is clear, as 591 of the 608 properties (97.2%) are rented. This near-total focus on rental income underscores the business-oriented nature of these holdings.

In a surprising market shift, landlords paid a significant premium for properties in the first quarter of 2026. Their average acquisition price was $172,357, which is $32,635, or 23.4%, more than the $139,722 paid by traditional homeowners.

This premium marks a stark reversal from previous quarters, highlighting extreme volatility in investor purchasing behavior. For instance, in Q3 2025, landlords secured a 25.3% discount, paying $49,842 less than homeowners. This was preceded by another premium of 20.4% in Q1 2025.

The inconsistent price gap suggests that investors in Knox County are not consistently finding off-market deals but are instead acting opportunistically, sometimes paying above market rate for desirable properties.

Overall price trends for landlords have been relatively flat, with the average acquisition price in 2025 ($180,724) slightly below the 2024 average ($185,144). This indicates a stable, rather than rapidly appreciating, purchasing environment for investors.

It is important to note the low transaction volume in recent quarters, as the '0 properties' listed for many timeframes suggests that these averages may be based on a very small number of sales, making them susceptible to outliers.

During the fourth quarter of 2025, landlords were a significant force in the market, purchasing 11 of the 48 available single-family homes, capturing a 22.9% market share of all sales.

This acquisition activity was exclusively driven by small-scale investors. Mom-and-pop landlords (owning 1-10 properties) accounted for 100% of all investor purchases, underscoring the grassroots nature of the local investment scene.

The quarter saw a fresh wave of new market participants. Ten of the 11 properties (90.9%) were bought by 14 separate entities now in the single-property tier, signaling robust interest in entry-level real estate investing.

In stark contrast, institutional investors (1,000+ properties) made no acquisitions, registering 0% of the landlord purchase volume. This complete absence reinforces that large-scale capital is not a factor in this market's current dynamics.

The data reveals a clear picture of market growth originating from new, small investors rather than the expansion of existing large portfolios.

The investor ownership landscape in Knox County is defined by the overwhelming dominance of small landlords. Investors in the mom-and-pop tiers, who own between 1 and 10 properties, collectively control 96.6% of all investor-held single-family homes.

The market's foundation is the single-property landlord. This tier alone accounts for 522 properties, representing a massive 85.2% share of the entire investor portfolio.

Mid-size investors (11-1,000 properties) constitute a very small segment of the market, holding a combined 3.1% of properties. This indicates a lack of portfolio scaling beyond the 10-property mark for most local investors.

Institutional capital has a virtually nonexistent presence. The largest tier of investors (1,000+ properties) owns just 2 properties, a mere 0.3% of the investor market. This finding directly counters the narrative of large corporations dominating local housing markets.

The distribution clearly shows a highly fragmented market, with the vast majority of rental housing provided by small, local operators.

Ownership structure in Knox County clearly evolves with portfolio size. Individual investors are the primary owners of smaller portfolios, holding 97.3% of single-property assets and 85.4% of two-property portfolios.

As investors scale up, the prevalence of corporate ownership increases. In the small landlord tier of 6-10 properties, companies already own a 20.0% share, suggesting a move towards formal business structures as holdings grow.

The definitive crossover to corporate dominance happens at the large landlord tier. For portfolios between 101 and 1,000 properties, companies own 3 out of 4 homes, representing a 75.0% majority share.

This pattern indicates a natural progression where investors incorporate their holdings for liability protection, financing advantages, and operational efficiency as their portfolios expand.

Despite this trend at the top, the overall market remains defined by individuals, who own 567 of the 608 total investor properties (93.3%).

Investor activity in Knox County is geographically concentrated. The 40906 zip code stands out as the area with the highest volume of investor properties, totaling 180 homes.

Following 40906, the next most popular areas for investors by count are 40701, with 132 properties, and 40734, with 72 properties. These three zip codes represent the core of investor holdings in the county.

The areas with the highest volume are not the same as those with the highest penetration rate. The 40949 zip code has the greatest investor saturation, with 24.5% of its housing stock owned by investors.

Similarly, the 40997 (20.8%) and 40982 (20.0%) zip codes also show high investor concentration, with rates significantly above the county average of 11.0%.

This distinction between high-count and high-percentage areas reveals different market dynamics, from broad rental markets in larger zip codes to heavily saturated investment niches in smaller ones.

Investors in Knox County are consistently in an accumulation phase, buying significantly more properties than they sell. In the first quarter of 2026, they demonstrated strong net buying activity, with 15 acquisitions against only 6 sales.

This behavior is part of a long-term trend. Throughout 2025, landlords acquired 91 properties while disposing of just 19, a buy-to-sell ratio of 4.8 to 1. This sustained accumulation signals strong confidence in the local rental market's future.

The pattern holds true for 2024 as well, when investors purchased 77 homes and sold only 18, reinforcing the multi-year trend of portfolio growth.

Even the small contingent of institutional investors are net buyers. In 2025, they acquired 5 properties and sold 3, mirroring the broader market trend on a much smaller scale.

The persistent net buying across all investor types indicates a robust and growing investor presence in the county.

In the first quarter, investors were a major driver of market activity, participating in 15 of the 65 total SFR transactions, which translates to a 23.1% share of all sales.

The entirety of this transactional volume came from mom-and-pop investors. The single-property tier was the most active, responsible for 14 of the 15 landlord purchases, while institutional investors made no transactions.

A key finding from the quarter is the source of inventory for investors. None of the properties purchased by landlords were acquired from other investors, reflected in a 0% 'Bought From Landlords' rate. This shows that investors are primarily buying from homeowners.

There is a pricing difference between the most active tiers. Single-property buyers paid an average of $170,769 per property, while the one active buyer in the 3-5 property tier paid a higher price of $193,000.

This lack of inter-landlord trading suggests a market where investors hold onto assets rather than frequently trading them, obtaining new inventory from the broader housing market.