Location: Union 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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $248,227 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38650 in Union County, Mississippi, reveals several key points for potential landlords and small-portfolio investors.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for the metro region as of fiscal year 2026 is set at $850, while the actual market rent, according to the Census ACS, stands at $782. This indicates that landlords might find it challenging to charge the FMR due to lower market expectations, potentially leading to reduced profitability.
Acquisition in this ZIP code is relatively affordable. The median home value is $197,589, which is within reach for many investors. However, the lack of data on days on market (DOM) and the percentage of homes that have had their prices cut suggests that the local housing market dynamics are unclear. This uncertainty could affect the ease of acquiring properties at favorable prices.
Tenant demand in ZIP 38650 is moderate. With a total population of 4,599 and a renter share of 20.6%, there are approximately 948 potential renters. This number should be considered alongside the affordability of housing and the competition from other rental properties in the area.
Verdict: While the median home value makes property acquisition relatively affordable, the mismatch between the FMR and market rent poses a challenge for achieving desired rental yields. Tenant demand exists but is limited by the size of the population and the percentage of residents who choose to rent. Landlords and investors must carefully consider these factors before entering the market in ZIP 38650.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.