No housing discussion is complete without paying attention to the affordability issue. And the most recent data from the Atlanta Federal Reserve Bank adds some good news to that discussion.  

Affordability in the local counties monitored by the bank’s Homeownership Affordability Tool increased last year. That assessment doesn’t jibe with some of the other organizations’ metrics. Here’s why. 

Affordable housing, as defined by the U.S. Department of Housing and Urban Development (HUD), is based on how much a person spends on housing. The benchmark is no more than 30% of their gross income for housing costs, including utilities.  

Other affordability measures fit the financial conditions based on what lenders prefer. It defines affordable housing with the assumption that the buyer has a 28% front-end debt load, a 20% down payment, and a good credit rating. The down payment is a big issue because most local buyers don’t fit the 20% mold. The average is closer to 7%- 10%. And without a 20% down payment, lenders add private mortgage insurance (PMI), which adds hundreds of dollars to the monthly mortgage. 

Based on the percentage of income spent on housing by the Atlanta Federal Reserve Bank’s tracker, here’s how the income share spent on housing by local homeowners stacks up. The comparison is from January of last year to December: 

Carter – 33.7%, down 7.7% 

Hawkins – 32.2%, down 5.9% 

Greene – 30.7%, down 3.3% 

Sullivan – 30.8, down 7.2% 

Unicoi – 30%, down 14.5% 

Washington Co. TN – 46.4%, down 24.3% 

Scott Co. VA – 31.3%, down 14.6% 

Washington Co. VA – 35.4%, down 1.9% 

Bristol, VA – 41.5%, down 5.7% 

The only thing missing from the tracker’s calculations is the utilities share of monthly housing costs.  

Atlanta also focuses on the components and average monthly payment for buyers who didn’t have a 20% down payment. The information is on the metro and not county level, but it’s still noteworthy. Here’s what the Dec. 2025 data looks like: 

Greeneville metro area 

Principal and interest – $1,349 

Home insurance – $141 

Property tax – $110 

Private mortgage insurance $103 

Total monthly payment – $1,703 

Johnson City MSA 

Principal and interest $1,735 

Home insurance $141 

Property tax – $179 

Private mortgage insurance $132 

Total monthly payment $2,187 

Kingsport-Bristol, TN-VA MSA 

Principal and interest $13,81 

Home insurance $139 

Property tax – $148 

Private mortgage insurance $105 

Total monthly payment is $1,774 

All the amounts in the MSA breakdown reflect the mid-point (the median) for monthly payments. 

Some analysts say that the 30% of income for housing is an outdated model that doesn’t reflect current economic conditions. That opinion is supported by the increasing number of homeowners who are more accepting risk and willing to have a lower discretionary income. Some are paying as much as 40%.  

The Tri-Cities’ affordability concerns are driven by a rapid increase in home prices in the post-pandemic era. The surge of new residents and increased organic sales created an inventory shortage. That drove prices higher, and they quickly outpaced local wage increases and that pushed many locals out of the market. 

While all the formulas and data used to set affordable benchmarks are helpful, what is and isn’t affordable is an individual matter where the financial capabilities of individuals determine what they can and can’t afford. That’s why real estate professionals suggest buyers sit down with lenders to work out what they can afford. The next step is a heart-to-heart discussion with a professional Realtor® about what’s available on the market. Those two steps save a lot of time and disappointment in the housing search process.