Location: Morristown, 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 | $306,708 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 37891 stands out due to its unique demographic and economic characteristics. With a population of 3,671 residents, it has a rental rate of 30.2%, indicating a significant portion of the community relies on rented housing. The median income in this area is $47,288, which is relatively modest compared to the median home value of $263,985. This suggests that homeownership is less accessible for many residents, making rental properties a critical component of the local housing market.
Turning to the economics of Section 8 vouchers, the Fair Market Rent (FMR) for ZIP 37891 in fiscal year 2024 is set at $910. This figure is notably higher than the market rent of $781, as reported by the Census Bureau's American Community Survey. Landlords who accept Section 8 vouchers can benefit from the higher FMR rates, which provide a buffer against the natural fluctuations in the market rent. However, it is important to note that the difference between the FMR and the market rent is not insignificant, potentially leading to increased demand for subsidized housing in the area.
The data signature for ZIP 37891 reads as stable. Despite the modest median income, the relatively high median home value and the disparity between FMR and market rents suggest a balanced market where subsidized housing plays a crucial role. For small-portfolio investors and landlords, accepting Section 8 vouchers can be a strategic move, ensuring steady income while contributing to the stability of the local housing ecosystem. The consistent demand for rental units, coupled with the higher FMR rates, provides a solid foundation for investment in this ZIP code.
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.