Location: Union County, MS | Metro: Benton County, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
ZIP 38633, located in Union County, MS, serves as a solid cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for a one-bedroom unit in this ZIP code for fiscal year 2024 is set at $1050. In comparison, the market rent stands at $724, indicating a significant spread that benefits landlords participating in the Section 8 program.
The higher FMR compared to the market rent ensures a steady cash flow. Landlords receive a fixed amount from the Housing Authority, which exceeds the typical market rate, thus providing a cushion against potential rent shortfalls. This is particularly advantageous given the median home value in ZIP 38633 is $164,195, suggesting that property values are relatively stable and not likely to appreciate rapidly.
While ZIP 38633 does not present an immediate opportunity for capital appreciation, it offers a reliable source of income. The lack of data on price-cut shares and days on market (DOM) indicates that there isn't a strong trend towards declining property values or prolonged vacancy periods that would suggest rapid appreciation. Instead, the focus should be on maintaining consistent occupancy and cash flow.
The ZIP code also has a notable 42.1% renter share, meaning a significant portion of the population is already accustomed to renting, which can contribute to a stable tenant base. With a median income of $33,029, many residents likely qualify for Section 8 assistance, further supporting the demand for rental properties under this program.
In summary, ZIP 38633 acts as a dependable cash-flow anchor due to the favorable spread between the FMR and market rent. It provides a predictable income stream without the risks associated with volatile markets or the need for rapid appreciation. For landlords and small-portfolio investors looking to stabilize their investment returns, this ZIP code is a strategic choice.
Data Sources: FMR data from HUD (2027). 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.