Location: Tippah County, MS | Metro: Benton County, MS HUD Metro FMR Area
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 | $770 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,160 | $196,022 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 38603 stands out due to its unique demographic and economic characteristics. With a population of 2,530 residents, only 8.0% rent their homes, indicating a predominantly owner-occupied area. The median income in this ZIP is $43,676, while the median home value is significantly higher at $155,096. This suggests that homeownership is an attainable goal for many residents, possibly due to lower rental rates.
The voucher economics present an interesting opportunity for landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930, whereas the current market rent, according to Census ACS data, is $646. This means that landlords who participate in the Section 8 program can potentially receive a higher rent payment compared to the local market rate. However, it's important to note that the Section 8 program caps rent at the FMR, so landlords should ensure that their properties meet the necessary standards to qualify for these higher payments.
Based on the data signature, ZIP 38603 appears to be a stable community. The relatively low percentage of renters indicates a strong trend towards homeownership, which often correlates with long-term stability and a sense of permanence among residents. Additionally, the median income, while not high, is sufficient for many to afford homeownership at the current median home value. The gap between the FMR and the actual market rent also suggests a healthy margin for landlords participating in the Section 8 program.
In conclusion, ZIP 38603 offers a stable environment for both homeowners and landlords. For those considering participation in the Section 8 program, the potential to receive a higher rent payment ($930) compared to the local market rate ($646) is a significant incentive. Landlords should prepare their properties to meet the required standards to benefit fully from this opportunity. The data signature clearly points towards a stable rather than transitional community, making it a reliable choice for investment.
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.