Location: Tate 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 | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $217,981 | 0.56% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 38635 is characterized by a modest gap between the Fair Market Rent (FMR) and the actual market rent, indicating a relatively stable rental environment. With an FMR of $1020 for fiscal year 2024 and a reported market rent of $805 based on Census ACS data, there is a clear opportunity for landlords to adjust their rents upwards without significantly deterring tenants. The low price-cut share of 0.3% suggests that properties are generally being priced at levels that attract buyers or renters without the need for substantial discounts, pointing towards a balanced demand.
The median home value of $172,371 places this area within an affordable range for many potential homeowners, which could contribute to steady demand for both rentals and sales. However, the lack of specific Days on Market (DOM) data indicates either a very quick sale process or a situation where homes are selling shortly after being listed, implying strong buyer interest.
The 18.0% renter share in ZIP 38635 reflects a smaller proportion of renters compared to owners. This dynamic can be indicative of a long-term trend where homeownership is favored, potentially reducing the immediate pressure on rental properties. Nonetheless, the presence of any rental market signals ongoing demand for affordable housing options, especially considering the FMR and market rent figures.
Landlords and small-portfolio investors should consider the affordability of the area and the potential for modest rent increases. The snapshot of the market suggests that while there isn't overwhelming evidence of supply outpacing demand, the slight discrepancy between FMR and market rent hints at a slight lean towards demand being able to support higher rents. This balance, combined with the affordable median home value, positions ZIP 38635 as a market where both rental and ownership opportunities can thrive, catering to a diverse set of housing needs.
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.