We tend to see rent by the room more common for students around universities in MA at least.

If you don’t mind having it only in the Summer—June and July—you could rent to NAU grad students or undergrad.My wife and I do that, they sign a 10 month lease and get a nice 3/2 fully furnished SFH.

We have several 1-2 family rentals in a neighborhood that gets a mix of students, grads, and professionals.

The work I do is for a waterslide company and they don’t report anything, and I cut grass as well while being a full time college student.

If it's a three bedroom you can collect rent for two bedrooms, especially college students.

To do this, he is currently living out of his car and subletting his BR at a significant profit (UCSB has severe student housing shortage).  

How convenient is it for students or young professionals?

Deals don't make sense unless you do something crazy like put 8 students in a single family :) 

I have no credit debt and $12,000 of student loan debt I'm looking to pay off within the year.

There's also Jefferson City which is just east of knoxville that has some upside too. college town near a lake which gives some upside for students or short term rentals depending on what you like to do.