Location: Coahoma County, MS | Metro: Tunica 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 | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $180,751 | 0.71% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 38626 might raise several valid concerns regarding the feasibility of investing in rental properties within this area. Let's address these objections head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1190 cover the mortgage on a $163,689 home?
The FMR is an indicator of the average rent that can be charged for a property, but it does not directly reflect the mortgage payment. To determine if the FMR will cover the mortgage, we need to calculate the monthly mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the principal and interest payment alone would be approximately $845 per month. This amount does not include property taxes, insurance, and maintenance costs. With an FMR of $1190, the rent covers the mortgage payment and leaves room for other expenses, though the margin is tight.
Objection 2: Is there enough renter demand at 19.9%?
The 19.9% figure likely represents the percentage of households that rent within ZIP 38626. While this is a significant portion, it is important to consider the overall population and the number of rental units available. A higher percentage of renters suggests strong demand, but the absolute number of potential tenants is also critical. The data does not provide the total number of households or the vacancy rate, which would help assess the supply-demand balance more accurately.
Objection 3: Will vouchers keep pace with $798 market rents?
Vouchers are a crucial source of income for many landlords, especially in areas where low-income families are prevalent. However, the data does not specify the average voucher amount in ZIP 38626. Generally, vouchers aim to cover a substantial portion of market rents, but they are often capped at certain levels. If the average voucher amount is below $798, landlords might face challenges in covering their expenses. To mitigate this risk, landlords could seek out properties that qualify for higher voucher amounts or focus on non-voucher renting opportunities.
In conclusion, while the data provides some insights into the investment potential of ZIP 38626, particularly regarding rent coverage and the presence of renters, it does not offer a complete picture. Landlords and small-portfolio investors should conduct further research into local market conditions, including the total number of households, the vacancy rate, and the specifics of housing voucher programs, before making any investment decisions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.