Location: Hancock County, TN | Metro: Kingsport-Bristol, TN-VA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The ZIP code 37881 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern, as the market rent stands at $699, while the Fair Market Rent (FMR) for FY 2024 is set at $910. This discrepancy suggests that tenants paying market rates may leave once they become eligible for Section 8 vouchers, leading to frequent tenant changes. Additionally, vacancy exposure is heightened due to an unspecified number of days on the market (DOM), which indicates a lack of historical data to predict how long properties might remain vacant between tenancies.
The deferred maintenance risk is also notable. With a typical home value of $226,183 and a median household income of $37,443, residents may struggle to afford necessary repairs and upkeep, potentially leaving landlords to cover these costs. The financial strain on tenants can result in slower response times to maintenance requests or even non-payment of rent, increasing the burden on property owners.
However, the high renter share of 20.0% in ZIP 37881 offers a silver lining. A large percentage of renters typically translates into higher demand for housing assistance vouchers, ensuring a steady pool of tenants who are financially supported by the government. This can provide a measure of stability and security in rental income, despite the initial risks.
In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP 37881 are moderate. While there are concerns about tenant turnover, vacancy exposure, and deferred maintenance, the high renter density mitigates some of these issues by providing a consistent demand for subsidized housing.
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.