Peerman was born in Lynchburg, Virginia to parents Stanley and Melissa Peerman. Peerman grew up working on his family's tobacco farm in Gladys, Virginia. He attended William Campbell High School in Naruna, Virginia. There, he was a four-year starter and played on both offense and defense. He set the Virginia state record for career scoring with 708 points. In his sophomore year, he was moved from wide receiver to running back and rushed for more than 1,000 yards. As a junior, he rushed for 2,048 yards and 43 touchdowns, and caught 22 passes for 367 yards and seven touchdowns. As a senior, he attempted 222 rushes for 2,016 yards and 43 touchdowns. He was twice named first-team all-state and, as a senior, was named the Virginia state player of the year. Peerman was also named a PrepStar All-American.
Peerman was also a standout sprinter and long jumper for the high school track team. He was state champion in the 100 meters as a junior and senior. He also placed fourth in the long jump and triple jump, and eighth in the shot put to lead his school to state championship as a senior.
Peerman attended the University of Virginia where he majored in sociology. He sat out the 2004 season as a redshirt. In 2005, he saw action in every game with a start against Syracuse. He recorded 237 rushing yards, ranking sixth among Atlantic Coast Conference (ACC) freshmen. He also averaged 25.8 yards per kickoff return, tying for second in the ACC. Peerman was Virginia's all-purpose yardage leader with 793 yards. In 2006, he saw action in all 12 games, including a start against Wyoming. He again led the team in kick returns with 519 yards (27.3 yards per return). Peerman attempted 46 carries for a gain of 153 yards. In 2007, Peerman suffered a season-ending foot injury early in the team's sixth game. Nevertheless, he was Virginia's leading rusher with 585 yards. In 2008, Peerman saw action in 11 games. He was Virginia's leading rusher and leading scorer, with 153 carries for 774 yards and seven touchdowns. He ranked third in receiving, with 44 receptions for 193 yards. Peerman also returned five kicks for 108 yards.
NFL Draft Scout had rated him 14th out of 176 prospective running backs for the 2009 NFL Draft.
Peerman was selected in the sixth round (185th overall) of the 2009 NFL Draft by the Baltimore Ravens. He was waived during final cuts on September 5.
Peerman was claimed off waivers by the Cleveland Browns on September 6, 2009. After being inactive for the first two games of the season, Peerman was waived on September 26 when the team signed placekicker Billy Cundiff. The Browns re-signed Peerman to their practice squad on September 29. He was released on October 28.
Peerman was signed to the Detroit Lions practice squad on October 30. He was promoted to the active roster on December 15 after running back Kevin Smith was placed on injured reserve.
He was waived on April 26, 2010.
Peerman was claimed off waivers by the Cincinnati Bengals on April 27, 2010. For two seasons, Peerman served as a backup, rushing a total of only five times. During the 2012 season he had two long runs off fake punts and he also carried the ball 34 times for 178 yards.
On March 7, 2013, the Bengals re-signed Peerman on a two-year deal. He served as the special teams captain for the 2014 and 2015 seasons. Peerman was named to his first Pro Bowl for the 2015 season as a special teams player.
On September 4, 2016, Peerman was placed on injured reserve with an elbow injury. He was activated off injured reserve on November 26, 2016.
On March 23, 2017, Peerman re-signed with the Bengals. He was placed on injured reserve on August 29, 2017 after suffering a shoulder injury.
Peerman is an Associate Minister at the Mt. Zion First African Baptist Church in Charlottesville, Virginia, under the leadership of Dr. Alvin Edwards, Pastor. Peerman was licensed to preach in the summer of 2008 at Hills Creek Baptist Church in Gladys, Virginia. Peerman graduated in May 2008 with a degree in sociology and took graduate courses during his fifth year at Virginia. During the 2012 offseason, Peerman served as a pastoral intern for Dr. Keith Goad at Jefferson Park Baptist Church in Charlottesville, VA.