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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $121,834 | 0.82% | C |
| 3BR | $1,250 | $201,373 | 0.62% | D |
| 4BR | $1,340 | $266,250 | 0.5% | F |
U.S. Census Bureau data (2024)
The rent math for ZIP 24251, located in Gate City, VA, within the Kingsport-Bristol, TN-VA MSA metro area, does not favor landlords. The Fair Market Rent (FMR) set at $910 for fiscal year 2024 exceeds the market rent reported by the Census American Community Survey (ACS), which stands at $676. This discrepancy suggests that landlords relying on the FMR may struggle to find tenants willing to pay the higher rate.
Acquisition in ZIP 24251 is relatively affordable, with a median home value of $172,364. However, the lack of data on days on market (DOM) and the low 0.3% price-cut share indicate that homes are not typically left unsold for long periods, nor do they often require significant price reductions. This implies that while the initial purchase cost might be manageable, there could be limited room for negotiation or adjustment in the event of a prolonged sale process.
Tenant demand in ZIP 24251 is modest. With a total population of 7,937, and 25.0% of residents being renters, the pool of potential tenants is around 1,984 individuals. This figure is not substantial enough to ensure high occupancy rates without competitive pricing.
Verdict: For landlords and small-portfolio investors, ZIP 24251 presents challenges. The FMR of $910 is not aligned with the actual market rent of $676, making it difficult to secure tenants at the higher rate. While homes can be acquired at an affordable median value of $172,364, the limited number of renters—only 1,984 out of a total population of 7,937—suggests a constrained market for rental properties. To succeed in this area, landlords must offer competitive rents and consider the modest size of the rental market when planning their investment strategy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.