Location: Roane County, TN | Metro: Roane County, TN HUD Metro FMR Area
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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $281,380 | 0.37% | F |
| 3BR | $1,370 | $347,149 | 0.39% | F |
| 4BR | $1,680 | $504,954 | 0.33% | F |
U.S. Census Bureau data (2024)
The median income in Kingston, TN (ZIP 37763) stands at $81,000, which places it slightly above the national average. However, when considering the market rate for rent, which is $763 according to the latest Census ACS data, households may find themselves stretched thin. This figure represents a significant portion of their monthly income, especially when factoring in other expenses such as utilities, groceries, and transportation.
Comparatively, the Fair Market Rent (FMR) set by HUD for ZIP 37763 in fiscal year 2024 is $1030. This is notably higher than the current market rate, indicating that the rental market is not fully aligned with government standards for affordable housing. The discrepancy between the actual market rate and the FMR suggests a potential opportunity for landlords who accept Section 8 vouchers, as they could receive higher payments than what the market currently offers.
With only 16.1% of the 16,984 population being renters, competition among landlords is relatively low. This means that those who offer properties within the acceptable range for voucher holders can potentially secure a steady stream of tenants without having to significantly lower their rents. Moreover, the limited number of renters implies that there might be fewer units available overall, which could drive up demand for those that do exist.
The affordability gap in Kingston highlights a challenge for both renters and landlords. For renters, finding a place that fits within their budget while also meeting quality standards can be difficult. For landlords, deciding whether to cater to voucher recipients or focus on cash-paying tenants requires careful consideration. Accepting vouchers ensures a guaranteed, albeit government-regulated, income stream. On the other hand, targeting cash-paying tenants may provide flexibility but comes with the risk of fluctuating market rates and tenant availability.
Takeaway for landlords: Given the higher FMR compared to the current market rate, landlords in Kingston should consider accepting Section 8 vouchers to tap into a more stable income source. While this strategy may limit the pool of potential tenants, it aligns with the government's affordability guidelines and provides a competitive edge in a market where many households struggle with high rent costs relative to their income levels.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.