Location: Lafayette County, MS | Metro: Lafayette County, MS
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 | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $323,630 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 38601 has a population of 2,507, with 16.6% of residents being renters. The median household income stands at $47,941, which provides insight into the economic conditions of the area. Given that the market rent is $822 per month, we can calculate that typical rent consumes approximately 19.7% of the local median income. This figure is derived from dividing the market rent by the median income and multiplying by 12 months to annualize the rent cost.
Comparing the market rent of $822 to the Fair Market Rent (FMR) of $1,170, as set for FY 2026 in the metro area, it's evident that the rental costs in ZIP 38601 are below the FMR. This suggests that there is potential for a significant demand from tenants using Section 8 vouchers, given that the actual rents are lower than what the vouchers cover.
The kind of tenant profile a landlord in ZIP 38601 should expect includes individuals and families who are likely to benefit from housing assistance programs due to the relatively high proportion of income dedicated to rent. These tenants will often have a fixed monthly rent amount covered by their vouchers, which typically equals the FMR. Landlords may find that they attract tenants whose total incomes allow them to contribute a small portion towards the rent beyond what the voucher covers, but the majority of the rent will be subsidized.
In conclusion, ZIP 38601 is a modestly renter-heavy area with a significant portion of the population potentially relying on housing vouchers. The lower-than-FMR market rents suggest a strong fit for Section 8 tenants, making it an attractive location for landlords willing to participate in the program. However, landlords should prepare for a tenant base that requires financial assistance to meet their housing needs, with the expectation that most of the rent will be covered by the voucher system.
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.