Location: Kingsport-Bristol, TN | Metro: Johnson City, TN 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 | $970 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $265,396 | 0.52% | F |
| 3BR | $1,750 | $397,645 | 0.44% | F |
| 4BR | $1,870 | $528,583 | 0.35% | F |
U.S. Census Bureau data (2024)
ZIP code 37686, located in Piney Flats, TN, is part of the larger Kingsport-Bristol, TN-VA MSA metro area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1170, which is notably higher than the market rent of $1,032. This indicates that the government subsidy for rental housing is more generous in this area compared to what the market naturally dictates.
The median home value in ZIP 37686 stands at $383,887, which is lower than the average home value in the Kingsport-Bristol, TN-VA MSA. This suggests that Piney Flats is a more affordable area within the metro, potentially attracting buyers looking for homes at a lower price point.
With a renter share of 23.5%, Piney Flats has a slightly higher proportion of renters than might be typical for ZIP codes within the Kingsport-Bristol, TN-VA MSA. However, this percentage alone does not provide enough context to determine if it's above or below the metro average without additional comparative data.
The combination of a relatively high FMR, a lower-than-average market rent, and a below-average home value, alongside a higher-than-average renter share, points towards ZIP 37686 being a value pocket within the metro. Landlords and small-portfolio investors should take note of the potential for subsidized rental income, which can make properties more attractive to tenants who qualify for Section 8 assistance. The higher renter share could indicate a significant presence of Section 8 tenants, making it an especially appealing location for those interested in participating in the program.
To summarize, ZIP 37686 offers a unique opportunity for investors seeking to capitalize on affordable housing options and government subsidies. The discrepancy between the FMR and market rent, coupled with the lower home values, makes it a strategic choice for those looking to invest in a neighborhood where the financial support from Section 8 can offset some of the risks associated with lower property values.
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.