Location: Marshall County, MS | Metro: Benton County, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 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)
The classification of ZIP code 38642 hinges on its financial metrics, particularly focusing on rental yield and market stability. The Fair Market Rent (FMR) for the area stands at $1010 for fiscal year 2024, which is notably higher than the market rent of $684. This discrepancy suggests a potential for higher yields when leveraging the FMR, especially considering the average home value in the area is $184,576. However, the percentage of renters in the area is relatively low at 21.6%, which could indicate less demand for rental properties compared to owner-occupied homes.
Market stability can be gauged by looking at the days on market (DOM) and the median household income. Unfortunately, the DOM data is not available for ZIP 38642. The median household income in the area is $59,388, which is below the national average but still provides a reasonable baseline for assessing the economic health of the area. This figure implies that tenants might have a limited ability to pay rents above the market rate, even though the FMR is higher.
Given these specifics, ZIP 38642 does not fit neatly into either a high-yield/low-stability 'flip-style' market or a steady-cashflow zone. Instead, it represents an intermediate scenario where there is potential for higher yields through strategic use of FMR, but the stability is compromised due to the low percentage of renters and potentially limited income levels. Landlords should consider these factors carefully when setting rents and preparing for tenant turnover.
To summarize, the key figures driving this assessment are:
These metrics suggest a moderate risk profile with opportunities for enhanced returns, but require careful management to ensure stable occupancy and cash flow.
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.