Location: Kingsport-Bristol, TN | Metro: Kingsport-Bristol, TN-VA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $130,813 | 0.96% | C |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 24245 for Section 8 purposes must navigate several key factors to make an informed decision. The first question to address is whether the Fair Market Rent (FMR) of $910 can cover the debt service on a property valued at $119,641. To determine this, calculate the monthly mortgage payment and any other recurring expenses such as property taxes and insurance. If these costs are less than or equal to $910, then the answer is yes, the FMR clears the debt service.
The second critical point is comparing the market rent of $434 (as per the Census ACS data) against the FMR. If the market rent is below the FMR, then landlords can potentially charge closer to the FMR for Section 8 properties, leading to higher cash flow. However, if the market rent is above or equal to the FMR, landlords will be limited to the FMR rate, which might result in lower profitability.
The third factor involves assessing rental demand. With 51.6% of the population being renters, there is a substantial portion of the market that relies on rental housing. However, the lack of data on days on market (DOM) makes it difficult to gauge how quickly properties are rented out. This uncertainty means that while there is significant demand, the speed at which units turn over is unknown. Therefore, if the FMR covers debt service and the market rent is below the FMR, the answer leans towards yes, given the high percentage of renters. But if the market rent is above or equal to the FMR, the decision becomes more nuanced, depending on the landlord's goals and tolerance for lower rents.
Decision Tree:
Note that the high percentage of renters (51.6%) suggests strong demand, but without knowing the average days on market, it's impossible to provide a definitive assessment on turnover rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
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.