Location: Kingsport-Bristol, TN | Metro: Kingsport-Bristol, TN-VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
The market analysis for Section 8 investors in ZIP code 37621, located in the Kingsport-Bristol County, Kingsport-Bristol, TN-VA MSA metro area, reveals several key points that will influence investment decisions.
The Fair Market Rent (FMR) set by HUD for ZIP 37621 in fiscal year 2024 is $910. This figure represents the maximum amount that voucher holders can pay towards rent. However, without specific market rent data for the area, it's challenging to provide a precise comparison. In general, if the market rents are higher than the FMR, voucher tenants would likely cashflow only with premium units or through additional subsidies. If market rents align closely with the FMR, cashflow would be marginal, requiring careful management of expenses to ensure profitability.
The median home value in ZIP 37621 is currently unavailable, which makes deriving an exact rent-to-price ratio difficult. However, understanding the relationship between rental income and property values is crucial for investors aiming to leverage long-term appreciation. Typically, areas with a lower rent-to-price ratio indicate a potential for greater capital appreciation over time, as property values may rise faster than rents.
Additionally, the number of days on market (DOM) and the percentage of homes that experience price cuts before selling are not available for ZIP 37621. These metrics are important for assessing the local real estate market's health and can impact the decision-making process for both buying and renting properties. A high DOM or significant price cuts suggest a buyer's market where negotiating terms and conditions might be favorable for investors.
The strongest angle for investors in ZIP 37621 is likely stability. Given the limited data, focusing on the predictability and reliability of Section 8 vouchers ensures a consistent income stream. Stability is particularly important in markets where other factors such as rapid appreciation or volatile rental prices are unclear or absent.
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.