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 | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $300,205 | 0.42% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP 37645 are significant and must be carefully considered. Tenant turnover is a major concern, as the market rent stands at $643, while the Fair Market Rent (FMR) for FY 2024 is set at $910. This discrepancy suggests that tenants might struggle to afford market rates, leading to frequent moves and higher vacancy rates. Vacancy exposure is another critical issue, with the average days on market (DOM) being unavailable, which implies that it can take an unpredictable amount of time to fill vacancies, thereby reducing rental income.
The deferred maintenance exposure is also noteworthy. With a typical home value of $265,591 and a median income of $68,866, many homeowners may find it challenging to keep up with necessary repairs and improvements, especially when relying on Section 8 payments that do not cover market rents. This situation can lead to properties falling into disrepair over time, increasing the costs for landlords and small-portfolio investors who may need to step in to maintain property standards.
However, these risks are offset by the high concentration of renters in the area, with 8.6% of the population being renters. High renter density typically correlates with increased demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants willing to use their vouchers in the ZIP code. This demand ensures that there will likely always be interested voucher holders looking for affordable housing options, making the property less susceptible to long-term vacancy issues.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 37645 supports a stable tenant pool. The overall risk for a first-time Section 8 landlord in this ZIP code is moderate.
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.