Tommy the area in question I am well familiar with. It has some things to consider before assuming it's depressed. It is in close proximity to the following areas:
Oak ridge national labs, Knoxville Tn, Chattanooga Tn, and with the recent addition of a highway connecting I 24 and I 75 in the middle rather than looping through Chattanooga or taking the long ride down I 40, has made prices in the area a lot higher than what you've quoted. I doubt very seriously you'll find a 3800 sq ft home for even double the price you've listed.

This area is also well used to TVA dollars. The mere mention of it makes the rent jump 50 percent.

Whole and short of it, anyone thinking along the lines of getting into the area cheap is making a mistake. I have 20 acres in the area on Dayton mountain. I've been following the prices for some time now. There has been a lot of speculation in regards to Watts Bar, and confirmation of the site going up has already spiked area prices.

As a point of history, Watts bar stands as "the" most expensive commercial nuclear site ever built in the states. 25 billion by the last report I read. Crafts worked that job so long
they retired without ever shifting to another project. Do a little history search on WBN. It will make for an interesting read.

The upside is it's a nice area, good hunting, good fishing, good scenery and aside from the occasional grubbing carpetbagger, some nice people.
But don't be under any illusions that it will be cheap. Now if you get conformation of the bellefonte site in Hollywood AL, that will be another story. 
There are just to many ways in and out of there in to many low cost areas. Aside from one paper mill, there is no industry to speak of in that area,
and therefore, prices are relatively cheap. Getting into 10 to 20 acres there would be no problem as long as you tell em your working in S pittsburg, Chattanooga,
or huntsville.

Regards,
Gerald