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 | $750 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $179,728 | 0.6% | F |
| 3BR | $1,350 | $267,801 | 0.5% | F |
| 4BR | $1,440 | $360,384 | 0.4% | F |
| 5BR | $1,670 | $488,886 | 0.34% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 37620 (Bristol, TN) presents a nuanced picture for both landlords and small-portfolio investors. With a median home value of $229,874, the market reflects a relatively affordable housing environment. The fact that only 0.3% of listings have been reduced suggests that sellers are maintaining their asking prices, indicating a level of pricing power that could persist over the next 12-24 months. This stability in pricing is further supported by the median days on market (DOM) of 23 days, which signals a brisk pace of sales and a market where homes are moving quickly once listed.
On the rental side, the Federal Market Rent (FMR) for ZIP 37620 in fiscal year 2024 is projected at $910, while the market rent, measured by Zillow's Observed Rental Index (ZORI), stands at $1,493. This significant gap between subsidized and market rents suggests that landlords can maintain higher rental rates without fear of losing tenants to cheaper alternatives. However, it also points to a potential challenge in attracting tenants who rely on government assistance programs.
For long-term investors considering Bristol, TN, the setup implies limited appreciation potential. The combination of an already low median home value and the minor reduction in listing prices indicates a market that is unlikely to experience rapid growth in property values. Instead, the focus should be on steady rental income, given the disparity between FMR and ZORI. Long-term appreciation would likely be modest, aligning more closely with inflation rather than speculative gains.
In summary, the current median home value, the low percentage of price reductions, and the quick DOM suggest a stable market with some pricing power for sellers. Landlords can leverage this stability to command higher rents compared to FMR levels, but they must be prepared for a rental market that may favor those willing to pay market rates. Appreciation for long-term investments will most likely be gradual and consistent with broader economic trends, rather than explosive.
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.