Tennessee Programs

Government Grants & Incentives for Real Estate Investors in Knoxville

Knoxville offers affordable entry points in a growing Tennessee market with no state income tax. THDA's LIHTC program and the Knoxville Community Development Corporation's (KCDC) programs provide accessible incentives for investors.

12 designated tracts
Opportunity Zones
~$1,430
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Tennessee Housing Development Agency (THDA)

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Public Housing Authority

Knoxville's Community Development Corporation (KCDC)

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Local Programs

Knoxville Government Incentive Programs

These programs are available specifically to investors and developers in the Knoxville, TN market.

THDA LIHTC Program

Tennessee allocates LIHTC credits through THDA, with Knoxville receiving allocation for affordable development.

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KCDC Choice Neighborhoods

HUD-funded initiative transforming the Five Points neighborhood with mixed-income housing and community investment.

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City of Knoxville CDBG/HOME

Federal community development funds for affordable housing production and neighborhood improvements.

Knox County PILOT Program

Payment in lieu of taxes program providing property tax relief for qualifying affordable housing developments.

LIHTC Tax Credits in Tennessee

Low-Income Housing Tax Credits are the largest source of affordable housing financing in the U.S. In Tennessee, credits are allocated by THDA.

How LIHTC Works

  • Dollar-for-dollar federal tax credit over 10 years
  • 9% competitive credits for new construction
  • 4% credits paired with tax-exempt bonds
  • 15-year compliance period for affordable rents

Tennessee Allocator

Credits are allocated by THDA through their Qualified Allocation Plan (QAP), which outlines scoring criteria and priorities.

View THDA LIHTC Program
Investor Tips

Why Invest in Knoxville?

No state income tax maximizes investor returns

Choice Neighborhoods initiative is transforming Five Points — early investors benefit most

Affordable acquisition costs in a growing mid-market city

University of Tennessee creates consistent rental demand

Finance Government-Incentivized Properties in Knoxville

FundNow Capital provides DSCR loans, bridge financing, and portfolio loans that complement government incentive programs in Knoxville.

DSCR Loans

Qualify using Section 8 rental income — government-backed rents strengthen your DSCR ratio.

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Bridge Loans

Short-term financing to acquire and stabilize properties before permanent LIHTC or agency financing.

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Portfolio Loans

Finance multiple properties in Knoxville's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Knoxville

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