Location: Kingsport-Bristol, 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 | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $271,036 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 37873 presents an interesting scenario for both renters and landlords. The median income in this area stands at $44,390, which contrasts sharply with the market rate for rent at $739 per month according to the Census ACS data. This means that the average household would find it challenging to meet the market rent without significant financial strain.
To put this into perspective, the monthly voucher payment standard for this ZIP code in fiscal year 2024 is set at $910. This figure, known as the Fair Market Rent (FMR), is higher than the market rate, indicating that households relying on vouchers might have more flexibility in their rental choices compared to those paying out-of-pocket.
Given the relatively low percentage of renters at 15.4% and a total population of 3,960, the competition among landlords for tenants is likely to be moderate. However, the affordability gap between the median income and the market rate rent suggests that there could be a substantial number of potential tenants who cannot afford the current market rates, leading to increased reliance on voucher programs.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while accepting vouchers may involve some administrative overhead, it opens up a broader pool of potential tenants who might otherwise struggle to pay market rates. Given the higher FMR compared to the market rate, landlords could still achieve a competitive return on investment by participating in voucher programs, ensuring steady occupancy and reducing vacancy risks.
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.