Location: Marshall County, MS | Metro: Marshall County, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
To determine if a landlord should invest in ZIP 38634 for Section 8 properties, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $1050 for fiscal year 2024 cover the debt service on a potential property?
If the landlord's target property has a debt service that is less than or equal to $1050 per month, then the answer is yes. The FMR directly supports covering the monthly mortgage and other financing costs. However, if the debt service exceeds $1050, the answer is no, as the rental income would not sufficiently cover the expenses.
2) Is the market rent above, at, or below the FMR of $1050?
It depends on the actual market rent figures in ZIP 38634. If the market rent is higher than $1050, then the landlord can potentially charge the higher market rate for non-Section 8 tenants and still meet the FMR requirement for Section 8 vouchers. If the market rent is at or below $1050, then the landlord must set their rent according to the FMR to be eligible for Section 8 tenants.
3) Are the percentage of renters and the days on market (DOM) sufficient to indicate demand for rental properties?
The answer depends on the specific percentages and DOM figures for ZIP 38634. A high percentage of renters combined with a low DOM suggests strong demand, making it a favorable investment. Conversely, a low percentage of renters or a high DOM indicates weak demand, which would make investing in this ZIP less attractive. Without specific numbers, it's impossible to give a definitive yes or no; the landlord must assess these factors based on local real estate data.
In summary, a landlord should consider the FMR coverage of debt service, compare market rents to the FMR, and evaluate the local rental demand before deciding to invest in ZIP 38634 for Section 8 properties. The key to a successful investment lies in ensuring that the rental income meets the landlord's financial obligations while aligning with the needs of potential tenants.
Data Sources: FMR data from HUD (2027).
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.