Location: Greene County, 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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $289,569 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 37711 reveals a distinct difference between the Federal Market Rent (FMR) and the market rent, which has implications for investment strategies.
The annualized Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 37711 for FY 2024 is $910 per month. This translates into an annual rental income of $10,920. Given the median home value of $239,977, the implied gross yield from the FMR is approximately 4.56%. The calculation is straightforward: $10,920 divided by $239,977 equals 0.0455, or 4.56% when expressed as a percentage.
In contrast, the market rent for a similar property is listed at $742 per month based on Census ACS data. This results in an annual rental income of $8,904. Using the same median home value, the implied gross yield from the market rent is about 3.71%. The calculation is $8,904 divided by $239,977, yielding 0.0371, or 3.71% as a percentage.
The significant gap between these two yields — 4.56% from FMR versus 3.71% from market rent — is noteworthy. However, the reality of rental income in ZIP 37711 must be considered through the lens of its 13.7% renter density. This relatively low figure suggests that a substantial portion of the housing stock is owner-occupied, reducing the pool of potential tenants and potentially affecting the ability to command higher rents consistently.
The absence of a specified number of days on the market (DOM) further complicates the picture, as it would provide insight into how quickly units can be rented out, impacting vacancy rates and ultimately the net operating income (NOI).
Given the low renter density, the market rent scenario appears more realistic. Landlords and investors should prepare for a lower gross yield reflective of actual market conditions rather than relying on the higher FMR figures, which may not be sustainable in practice.
In conclusion, while the theoretical gross yield based on FMR is 4.56%, the practical gross yield based on market rent is 3.71%. Investors should consider the latter as a more accurate benchmark for potential returns in ZIP 37711, especially given the context of low renter density.
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.