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 | $700 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $184,959 | 0.68% | D |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 24250 for Section 8 purposes must follow a structured decision-making process. Here’s a step-by-step analysis based on the key metrics:
1. Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for ZIP 24250 in fiscal year 2024 is $910. To determine if this clears the debt service on a property valued at $158,373, you need to calculate the DSCR. Assuming a typical mortgage rate and term, let's proceed with the calculation.
If the monthly debt service (including principal, interest, taxes, and insurance) on a $158,373 property is less than $910, then the answer is yes. This means that the FMR would cover the costs associated with owning the property. However, if the debt service exceeds $910, then the answer is no.
2. Market Rent Comparison: The market rent for ZIP 24250 is currently not available. Without this information, it is impossible to directly compare market rents to the FMR. If the market rent were available and found to be above the FMR, then landlords would face challenges in pricing their properties competitively. If it were at or below the FMR, landlords could potentially price their rentals at the FMR without losing out to the competition.
3. Rental Demand: In ZIP 24250, 13.7% of residents are renters, indicating a moderate level of rental demand. Additionally, the number of days on market (DOM) is not available, which makes it difficult to assess how quickly properties are typically rented. If the DOM were low, it would suggest strong demand, making it easier to fill vacancies. Conversely, high DOM values would indicate weak demand.
To summarize, if the debt service on a $158,373 property is covered by the FMR of $910, and the market rent is either at or below the FMR, then there is potential for investment in ZIP 24250. Given the 13.7% of renters, demand is moderate, but without knowing the DOM, it is challenging to provide a definitive recommendation. Therefore, the answer to whether you should buy here for Section 8 is it depends on the specifics of the property's debt service and the actual market rent conditions.
The decision tree can be outlined as follows:
Note that these decisions are contingent upon having accurate and up-to-date market rent and DOM data for ZIP 24250.
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.