Invest In Apartment Buildings In Sullivan County, TN

Who Rents In Sullivan County

Rental demand in Sullivan County comes from 19,199 renter households, which is 27.9% of occupied housing (ACS 2020–2024). Renter households rose 2.5% over five years, close to the population trend (up 2.3%).

Median household income in Sullivan County, TN is $58,807, up 26% over five years. Resident employment rose 6.5% and the unemployment rate was 5.4% in the latest survey. Rent has risen faster than income (33.1% versus 26%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Sullivan County leans toward ownership. Apartment buildings compete with single-family rentals for tenants, so we look closely at how a property's rents compare with nearby rental houses.

Rents, Vacancy And Supply In Sullivan County

Median gross rent in Sullivan County, TN is $889 a month, up 33.1% from $668 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

Rental vacancy is 5.1%, within the normal range for a balanced market. 43.9% of renters spend 30% or more of their income on housing. That is close to the national picture, where roughly half of renters do, so rent increases need to track local wage growth.

About 10.9% of homes in Sullivan County are in buildings with 5 or more units, roughly 8,302 homes. It grew 9.4% over five years, a moderate amount of new supply. The median home was built in 1977, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation. For comparison, HUD's fiscal year 2027 Fair Market Rent for a two-bedroom unit in the Kingsport-Bristol, TN-VA MSA is $1,091 a month.

Where Sullivan County Stands Among Its Peers

We track 8 Tennessee counties. Sullivan County places 8th for median gross rent, 6th for renter share and 6th for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. Compared with the 2015–2019 survey, Sullivan County now has about 3,574 more residents, 468 more renter households and 713 more homes in buildings with 5 or more units. New homes in 5+ unit buildings outpaced the growth in renter households, so newer buildings are competing for tenants and older ones may need to offer more to keep them.

Cities In Sullivan County At A Glance

We follow 2 cities in Sullivan County. The largest is Kingsport, with a median gross rent of $907 a month.

Sullivan County Compared With Tennessee

Sullivan County's median gross rent of $889 is below the Tennessee median of $1,189.

Rent Versus Income In Sullivan County

The median rent in Sullivan County works out to $10,668 a year, about 18.1% of the median household income of $58,807. Under the common 30% guideline, a household needs about $35,600 a year to cover that rent comfortably. That's a lighter load than the Tennessee average of 20.5%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $221 a month ($2,652 a year), while median household income rose $12,135 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $1,091, is 22.7% above the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Quick Facts: Sullivan County Rental Market

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Sullivan County, TN has 160,624 residents, up 2.3% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Sullivan County, TN is $58,807, up 26% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Sullivan County, TN is $889 a month, up 33.1% over five years (U.S. Census ACS 2020–2024).
• 27.9% of households in Sullivan County, TN rent, about 19,199 renter households (U.S. Census ACS 2020–2024).
• 10.9% of homes in Sullivan County, TN are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Sullivan County, TN is 5.1%, and 43.9% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Sullivan County, TN was built in 1977 (U.S. Census ACS 2020–2024).

What We Look For In Sullivan County

We look at buildings with 5 or more units in Sullivan County, from small walk-ups to larger garden-style communities, in stabilized or value-add condition. We compare in-place rents with nearby buildings, inspect roofs, plumbing and HVAC, and ask whether better management or targeted renovation can close the gap with the market.

Tennessee has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Tennessee has no statewide rent control law, though local rules on notices, fees and deposits still apply. We get an insurance quote before we make an offer, because premiums have risen in most states.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Questions To Ask About An Apartment Syndication In Sullivan County

The data on this page turns into a short checklist for evaluating an apartment syndication in Sullivan County.

• What vacancy does the plan assume? Rental vacancy in Sullivan County is 5.1%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 33.1% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Sullivan County was built in 1977, so roofs, plumbing and electrical systems deserve their own line items.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Sullivan County Apartment Syndication Works

Two groups make an apartment syndication work. The sponsor, or general partner, handles the deal: finding the building, financing it and running the business plan. The limited partners are passive investors who contribute capital and share in the property's results under the offering's terms.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

The first step is the investor network. It's free, and it's how we share market notes and get to know investors. If we buy in Sullivan County or elsewhere and you're eligible, we'll reach out privately with the details.