Location: Hancock County, TN | Metro: Kingsport-Bristol, TN-VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
The median income in ZIP code 37731 stands at $53,105, providing a foundational context for evaluating housing affordability. However, the market rate for rental properties in this area is currently unspecified, which poses a challenge for assessing direct affordability. Instead, we can focus on the Federal Market Rent (FMR) standard set for voucher payments in ZIP 37731 for fiscal year 2024, which is $910.
This FMR figure represents a significant benchmark for both renters and landlords. For renters, it means that if they qualify for a housing voucher, their maximum contribution towards rent would be around 30% of their income, which is approximately $1,593 based on the median income. This leaves a considerable margin above the $910 FMR, indicating that renters with vouchers could potentially afford higher rent rates than those covered by the voucher alone.
Considering the 14.9% of the 564 population that are renters, the demand for affordable housing is evident but limited. The affordability gap between the median income and the FMR suggests that there might be a competitive landscape for landlords. While some households may find the $910 FMR adequate, others might seek higher-quality rentals that exceed this amount, especially if they have additional financial resources beyond the voucher.
The takeaway for landlords is clear: while voucher recipients provide a stable source of income, the potential exists for renting units at market rates above the FMR to those who can afford it. Landlords should weigh the benefits of accepting vouchers—such as guaranteed rent payments and reduced vacancy risks—against the possibility of earning more per unit by attracting cash-paying tenants willing to pay above the voucher rate. This strategy requires understanding the local rental market dynamics and the financial capabilities of prospective tenants.
Data Sources: FMR data from HUD (2027). 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.