Section 8 Fair Market Rent (FMR) for ZIP 38606 - 2027

Location: Quitman County, MS | Metro: Lafayette County, MS

Investment Score for ZIP 38606

C
Monthly Rent (2BR)
$1,120
Median Price (2BR)
$118,095
1% Rule
0.95%
Annual Yield
11.38%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,120 $118,095 0.95% C
3BR $1,390 $202,811 0.69% D
4BR $1,490 $299,055 0.5% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
16,156
Median Household Income
$54,539
Housing Units
6,678
Renter Percentage
25.6%
Occupancy Rate
86.4%
Renter Occupied
1,478

Batesville, MS, located in Panola County, has a distinct demographic profile that sets it apart from other areas. With a population of 16,156 residents, Batesville stands out due to its relatively high rental rate of 25.6%. Despite this, the median income in the area is $54,539, which is modest compared to the median home value of $201,797. This indicates a significant disparity between income levels and housing costs, suggesting that renters, particularly those relying on government assistance, play a crucial role in the local real estate market.

The voucher economics in ZIP 38606 further highlight the importance of rental support. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,170, while the actual market rent, according to the Census ACS, is $914. This difference means that landlords can expect to receive a higher rent through Section 8 vouchers than what the current market offers. The gap between the FMR and market rent creates an incentive for landlords to participate in the Section 8 program, as it allows them to charge closer to the FMR rate, thereby increasing their potential revenue.

Considering the data signature of ZIP 38606, it appears to be in a transitional phase. The high percentage of renters combined with the modest median income suggests that many residents rely on rental assistance to afford housing. As the median home value significantly exceeds the median income, it also implies that homeownership is less accessible, leading to a reliance on rental properties. Landlords and small-portfolio investors should note the opportunity presented by the Section 8 program, where they can leverage the higher FMR rates to their advantage. However, the disparity between income and housing costs could indicate ongoing challenges in maintaining stable occupancy rates without government subsidies. Therefore, participation in the Section 8 program remains critical for ensuring steady cash flow and occupancy in the Batesville market.

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.