1031 Exchange in Kingsport Bristol Bristol MSA
The Kingsport-Bristol-Bristol MSA offers exceptional 1031 exchange opportunities with competitive property taxes (0.67-1.10%), strong appreciation (+4.9% to +15.8%), and manufacturing stability anchored by Eastman Chemical Company's 6,500 workers in 'East Tennessee's Tightest Housing Market.'
Population
310,000
Key Industries
Eastman Chemical Company (6,500 workers), BAE Systems (aerospace), Domtar (paper/pulp)
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.65% - 1.15%
Assessment Method
Assessed Value (Tennessee/Virginia Property Tax Codes)
MSA rate (0.67-1.10%) vs State average (0.58% (TN), 0.87% (VA))
Competitive with both state averages
Transfer Taxes & Fees
Transfer Tax Rate
Varies by state
Tennessee has no state transfer tax; Virginia has state transfer tax; local recording fees apply
Local Tax Incentives
Tennessee Enterprise Zone Program
Tax incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Virginia Economic Development Incentives
State and local incentives for business expansion
Eligibility: Companies creating jobs and investing in the area
Tri-State Manufacturing Incentives
Regional incentives for manufacturing and logistics
Eligibility: Manufacturing and distribution companies
Opportunity Zones
Number of Zones
3
Key Locations
- East Kingsport
- Central Bristol TN
- Southwest Bristol VA
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
310,000
Growth: +0.8% annually
Median Income
$55,948
Unemployment
3.8%
Job Growth
+1.9% annually
Economic Drivers
Market Trends
Median Home Price
$238,000 - $305,000
Average Rent
$1,285/mo
Cap Rates
7.5% - 9.5%
Demographics
Median Age
45.6 years
Bachelor's Degree+
22.8%
Owner Occupied
71.2%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand from manufacturing workers, healthcare professionals, and mature demographics in tight housing market.
Market Metrics
- Cap Rates: 8.8%
- Vacancy Trends: Low vacancy at 6.5% due to tight market conditions
- Demand Forecast: Excellent fundamentals with manufacturing stability and tight inventory
Risk Factors
- Limited inventory availability
- Mature demographics
Opportunities
- Manufacturing employment stability
- Tight market conditions
- Strong appreciation trends
Single-Family Rental
Popular with manufacturing families, healthcare workers, and professionals seeking quality housing in seller's market.
Market Metrics
- Cap Rates: 9.2%
- Vacancy Trends: Very low vacancy at 4.8% with high owner-occupancy market
- Demand Forecast: Strong fundamentals with Eastman Chemical anchor and tight market
Risk Factors
- High owner-occupancy rate (71.2%)
- Limited rental inventory
Opportunities
- Manufacturing family housing demand
- Tight market appreciation
- Competitive property taxes
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Kingsport
Chemical manufacturing hub with Eastman Chemical Company headquarters
Investment Thesis
Manufacturing employment stability, corporate headquarters presence, and established housing market supporting consistent rental demand.
Median Price
$293,000
Price Growth
+8.1% YoY
Rental Yield
8.8%
Days on Market
42 days
Key Highlights
Development Pipeline
Industrial expansion and residential development
Bristol, TN
Twin city with healthcare and education employment base
Investment Thesis
Healthcare employment, educational institutions, and twin-city dynamics creating diverse rental demand and market stability.
Median Price
$278,000
Price Growth
+15.8% YoY
Rental Yield
9.2%
Days on Market
38 days
Key Highlights
Development Pipeline
Healthcare facility expansion and residential growth
Bristol, VA
Virginia side with different tax structure and growth opportunities
Investment Thesis
Virginia tax advantages, cross-border employment access, and development opportunities creating unique investment positioning.
Median Price
$255,000
Price Growth
+12.3% YoY
Rental Yield
9.8%
Days on Market
45 days
Key Highlights
Development Pipeline
Commercial and residential development projects
Johnson City Area
Regional center with healthcare and university employment
Investment Thesis
Regional healthcare center, university presence, and broader employment base supporting diverse rental market.
Median Price
$268,000
Price Growth
+7.4% YoY
Rental Yield
8.5%
Days on Market
48 days
Key Highlights
Development Pipeline
Healthcare and educational facility expansion
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Compare Markets
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Compare Markets
| Metric | Kingsport Bristol Bristol (Current) | Johnson City | Asheville | Knoxville |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Kingsport Bristol Bristol 1031 exchanges
The tri-state MSA offers exceptional fundamentals: competitive property taxes (0.67-1.10% vs. 1.02% national), strong appreciation (+4.9% to +15.8%), manufacturing stability anchored by Eastman Chemical Company (6,500 workers), 'East Tennessee's Tightest Housing Market' conditions, and diversified economy including aerospace (BAE Systems), healthcare, and education.
Eastman Chemical provides exceptional stability as the region's largest employer with 6,500 workers: consistent housing demand from chemical professionals, corporate relocation support, stable employment base, competitive wages supporting rental rates, and long-term presence (over 100 years) ensuring market stability and continued investment in the region.
Yes, three opportunity zones exist: East Kingsport, Central Bristol TN, and Southwest Bristol VA. These offer potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains for long-term investments, particularly valuable given the manufacturing-anchored economic stability and tight market conditions.
The economy is anchored by Eastman Chemical Company (6,500 workers), BAE Systems (aerospace), Domtar (paper/pulp), regional healthcare systems, major school districts (Kingsport City Schools, Sullivan County Schools), Food City (regional retail), and Eastman Credit Union, providing exceptional economic diversity beyond manufacturing.
The 'East Tennessee's Tightest Housing Market' designation creates excellent investment conditions: limited inventory driving appreciation (+4.9% to +15.8%), seller's market with quick sales (38-48 days), low vacancy rates (4.8-6.5%), strong rental demand, and competitive advantage for existing property owners in a supply-constrained environment.