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 | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $140,876 | 0.71% | D |
| 3BR | $1,250 | $203,989 | 0.61% | D |
U.S. Census Bureau data (2024)
Kingsport, TN's ZIP code 37665 is characterized by a modest-sized population of 4,741 residents. The area is primarily owner-occupied, with only 23.5% of the residents being renters. The median household income in this neighborhood stands at $50,991, reflecting a middle-class community. Median home values in ZIP 37665 are relatively low at $167,092, which suggests that homeownership is accessible to many local residents.
The rental market in 37665 is defined by a disparity between the Fair Market Rent (FMR) and the actual market rent. As of the fiscal year 2024, the FMR for the area is set at $910, while the Census American Community Survey indicates a market rent of $775. This gap presents an opportunity for landlords and investors to potentially increase rents without overpricing their properties compared to the government standards.
Given these economic conditions, ZIP 37665 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the lower market rent compared to the FMR ensures a steady stream of Section 8 tenants, providing predictable cash flows and reduced vacancy rates. Meanwhile, hands-on value-add buyers can leverage the relatively low median home value to acquire properties at a reasonable cost, then improve them to command higher rents closer to the FMR. This strategy can yield higher returns on investment through increased rental income and potential property appreciation.
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.