Section 8 Fair Market Rent (FMR) for ZIP 37660 - 2027

Investment Score for ZIP 37660

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$810
1 Bedroom	$910
2 Bedrooms	$1,170
3 Bedrooms	$1,470
4 Bedrooms	$1,570
5 Bedrooms	$1,821
6 Bedrooms	$2,040
7 Bedrooms	$2,203
8 Bedrooms	$2,313

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,170	$170,685	0.69%	D
3BR	$1,470	$252,648	0.58%	F
4BR	$1,570	$373,370	0.42%	F
5BR	$1,821	$534,630	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 37660 (Kingsport, TN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Kingsport, TN, in ZIP code 37660, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1100. This amount represents 26.8% of the median household income in the area, which stands at $49,191. The FMR is designed to reflect the average rent paid by low-income families in the area, but it often falls short of actual market rents. In Kingsport, the Zillow median price for a two-bedroom home is $169,630, which translates to a price-to-FMR ratio of 12.9x. This means that the typical market rent for a two-bedroom unit is significantly higher than the FMR, potentially creating challenges for Section 8 voucher holders who must find housing within the FMR limits. #### Affordability & Renter Profile Given that 39.2% of the population in Kingsport, TN, are renters, the rental market is substantial. However, the occupancy rate of 88.1% suggests that there is a relatively tight rental market, with fewer units available compared to the number of potential tenants. The median household income of $49,191 indicates that many residents have limited financial resources, making affordable housing a critical need. With the FMR for a two-bedroom unit being $1100, which is only 26.8% of the median income, it is clear that the majority of renters would struggle to afford market-rate housing without assistance. This tight market could lead to increased competition for affordable units, particularly among those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the FMR levels provide a benchmark for determining whether properties can generate positive cash flow. For a two-bedroom unit, the FMR is $1100, which is well below the market rent indicated by the Zillow median price. Given the high price-to-FMR ratio of 12.9x, it is likely that many landlords will be hesitant to accept Section 8 vouchers due to the lower rent they receive compared to market rates. However, for investors willing to work within the FMR constraints, there is potential to capture a significant portion of the rental market, especially given the high percentage of renters and the tight occupancy rate. The investment grade in this ZIP code would depend on several factors, including the ability to secure financing at favorable rates, the cost of property acquisition, and the ongoing maintenance and management expenses. If an investor can acquire a property at a price that aligns with the FMR and manage it efficiently, there could be a positive cash flow scenario. However, the high price-to-FMR ratio suggests that this might be challenging unless the investor has access to low-cost capital or can leverage economies of scale. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high demand for affordable housing and the fact that the FMR for a two-bedroom unit is $1100, investors should focus on acquiring and managing two-bedroom units. These units are most likely to be occupied by Section 8 voucher holders, and the 26.8% of median income threshold makes them highly attractive to low-income families. 2. **Consider Multi-Family Properties**: Since the occupancy rate is high, multi-family properties can offer a better opportunity to ensure consistent cash flow. Investors should look for multi-family buildings where the total rent from all units combined can still fall within the FMR guidelines. For example, a four-unit building with two-bedroom units could generate a total monthly rent of $4400 ($1100 per unit), which is within the FMR limit for the area. 3. **Engage with Local Housing Authorities**: To navigate the complexities of the Section 8 program, investors should establish relationships with local housing authorities. These authorities can provide guidance on how to maximize the benefits of accepting vouchers and can help streamline the process of finding eligible tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 37660 is to **Buy**. The high demand for affordable housing, coupled with the substantial renter population, presents a viable opportunity to serve a critical need in the community. However, investors must be prepared to operate within the FMR constraints and should focus on properties that can generate positive cash flow despite the lower rent levels. Engaging with local housing authorities and focusing on multi-family properties can help mitigate some of the risks associated with this investment strategy. In summary, Kingsport, TN, offers a strong market for affordable housing investments, particularly for those willing to work within the parameters of the Section 8 program. The key to success lies in strategic property selection and effective management practices.

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.