Location: Johnson City, 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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $320,737 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 37687 presents several challenges for landlords considering Section 8 investments. Tenant turnover can be a significant issue, especially when comparing the market rent, which is currently unavailable, to the Fair Market Rent (FMR) of $1080 for FY 2024. This discrepancy can lead to difficulties in maintaining consistent occupancy and cash flow.
Vacancy exposure is another concern. The days on market (DOM) figure is also not available, but typically, a higher DOM indicates a greater risk of prolonged vacancies. In ZIP 37687, this uncertainty compounds the risk, as it's unclear how quickly properties might be rented out.
Deferred maintenance is a critical factor, given the typical home value of $241,441 and the median income of $49,914. Landlords must ensure that homes meet the necessary standards for Section 8 tenancy, which can require substantial upfront investment. The median income suggests that many residents may rely heavily on rental assistance, which could limit their ability to contribute to property upkeep beyond what the vouchers cover.
Despite these risks, there is a high concentration of renters in ZIP 37687, with 9.3% of the population being renter-occupied. High renter density often correlates with increased demand for housing vouchers, potentially stabilizing the rental market and providing a reliable source of tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.