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 | $800 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $279,401 | 0.52% | F |
| 4BR | $1,540 | $342,143 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 37642 reveals a market that offers a moderate balance between yield and stability, making it neither a high-yield/low-stability flip-style market nor purely a steady-cashflow zone.
On the yield axis, the Fair Market Rent (FMR) for ZIP 37642 in fiscal year 2024 is set at $940. This figure is higher than the market rent of $885, indicating a modest premium for landlords participating in the Section 8 program. However, the average home value in the area is significantly higher at $260,227, which means that the rental income generated through Section 8 might not fully cover the mortgage payments on properties of this value, unless there is a substantial down payment or equity already established.
Moving to the stability axis, the ZIP code has a relatively low percentage of renters at 19.2%, suggesting that the majority of residents own their homes. The median household income is $59,484, which provides some insight into the financial health of the local population but does not directly correlate with rental demand. The lack of data on days on market (DOM) for rentals makes it difficult to assess the speed at which properties can be leased, but the combination of low renter percentage and median income suggests a less volatile rental market compared to areas with higher renter percentages and lower incomes.
To summarize, ZIP 37642 leans towards a steady-cashflow zone due to its moderate FMR premium over market rent and the relatively stable economic indicators such as income levels and ownership rates. While the yield is not exceptionally high given the high home values, the stability of the market provides a consistent environment for landlords and small-portfolio investors. This classification is driven by the specific figures of $940 FMR versus $885 market rent, 19.2% renters, and an average income of $59,484.
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.