Section 8 Fair Market Rent (FMR) for ZIP 38641 - 2027
Location: Tunica County, MS | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $990 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$96,208
To determine if you should buy in ZIP code 38641 for Section 8 investments, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
- Does the Fair Market Rent (FMR) of $1160 cover the debt service on a property valued at $324,151?
- Yes: The FMR of $1160 is sufficient to cover the debt service on a property priced at $324,151. This means that a tenant receiving Section 8 assistance can afford the rent without financial strain.
- No: The FMR does not sufficiently cover the debt service on a property valued at $324,151. This makes it financially unviable to invest in this area for Section 8 tenants.
Step 2: Market Rent Comparison
- Is the market rent above, at, or below the FMR?
- N/A: There is no available data regarding the market rent in ZIP 38641. Without this information, it's difficult to gauge whether the market supports Section 8 rents or if there will be significant vacancy issues.
Step 3: Demand Analysis
- Are 5.1% of residents renting and with N/A days as Days on Market (DOM) enough demand for Section 8 properties?
- It Depends: With only 5.1% of residents being renters, the overall rental market in ZIP 38641 is relatively small. However, the lack of data on Days on Market (DOM) means we cannot accurately assess how quickly rentals are filled. If the DOM is low, it suggests strong demand; if high, it indicates potential challenges in finding tenants. Given the limited rental market share, it's crucial to consider other factors such as local employment rates and housing needs.
In conclusion, ZIP 38641 is viable for Section 8 investment if the FMR covers the debt service, but the lack of market rent data and the small percentage of renters make it a cautious choice. Additional research into local rental dynamics and tenant availability is recommended before making an investment decision.
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.