Location: Kingsport-Bristol, TN | Metro: Kingsport-Bristol, TN-VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
The potential risks for a Section 8 landlord investing in ZIP 24209, located in an unspecified area of Tennessee, must be carefully considered. Tenant turnover can be a significant issue, particularly when comparing the market rent to the Fair Market Rent (FMR) of $970 set for fiscal year 2024. If the market rent is lower than the FMR, it could lead to higher turnover rates as tenants might seek cheaper alternatives. However, if the market rent is higher, landlords might face challenges in attracting tenants who qualify for Section 8 vouchers.
Vacancy exposure is another concern. The days on market (DOM) for properties in this area is currently unknown, which makes predicting vacancy rates difficult. High DOM values typically indicate a challenging rental market, increasing the risk of extended vacancies. This risk is compounded by the unknown typical home value and median income in the area, which can affect the ability of residents to maintain their homes and cover utility costs, leading to potential deferred maintenance issues.
Despite these risks, the high renter share in ZIP 24209 provides a counterbalance. A larger percentage of renters generally translates into a higher demand for rental housing, including those seeking Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of qualified applicants.
In summary, the primary risks for a first-time Section 8 landlord in ZIP 24209 include uncertain tenant turnover, potential vacancy exposure, and deferred maintenance due to unknown economic indicators. However, the high renter share mitigates some of these risks by ensuring a robust pool of potential tenants. The overall verdict for this ZIP code is moderate risk.
Data Sources: FMR data from HUD (2027).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.