Section 8 Fair Market Rent (FMR) for ZIP 38655 - 2027

Investment Score for ZIP 38655

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,020
2 Bedrooms	$1,260
3 Bedrooms	$1,510
4 Bedrooms	$1,660
5 Bedrooms	$1,926
6 Bedrooms	$2,157
7 Bedrooms	$2,330
8 Bedrooms	$2,447

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,020	$260,175	0.39%	F
2BR	$1,260	$320,103	0.39%	F
3BR	$1,510	$419,707	0.36%	F
4BR	$1,660	$599,399	0.28%	F
5BR	$1,926	$864,388	0.22%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 38655 (Oxford, MS) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 38655 in Oxford, Mississippi, indicate that the rental costs for various unit sizes range from $1060 for a zero-bedroom unit to $1670 for a four-bedroom unit in 2026. However, the actual rental market is significantly higher, with the Zillow median price for a two-bedroom unit being $312,039. This translates into a price-to-FMR ratio of 20.6x, which means that the actual rental prices are much higher than what the FMR suggests. For instance, the FMR for a two-bedroom unit is $1260, while the median price on Zillow is approximately $312,039, suggesting that the average rent could be around $2,599 per month based on typical mortgage payments. This discrepancy creates significant constraints for Section 8 voucher holders. The vouchers are designed to cover up to 100% of the FMR, but given the high actual rental prices, voucher holders would struggle to find units that fit within their budget. For example, a voucher holder with a two-bedroom unit allowance would only have $1260 to spend on rent, which is far below the actual market rate. This makes it challenging for them to secure housing in the area, especially considering that the FMR covers only 22.2% of the median household income in Oxford. #### Affordability & Renter Profile The population of Oxford, MS, is 46,156, with 39.6% of residents being renters. The occupancy rate stands at 65.7%, indicating that the majority of properties are occupied, but there is still some room for additional tenants. Given the median household income of $68,235, the affordability of housing is a concern. The FMR for a two-bedroom unit is $1260, which represents 22.2% of the median income. This suggests that a significant portion of the population may find it difficult to afford housing without financial assistance. The rental market appears to be quite tight, with high demand and limited supply. The disparity between the FMR and the actual median rental price indicates that the market is oversupplied with expensive units and undersupplied with affordable ones. This tight market condition can lead to increased competition among renters, particularly those who rely on Section 8 vouchers, making it harder for them to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 38655 presents a mixed picture. While the high actual rental prices suggest strong demand and potentially robust cash flows, the alignment with Section 8 FMRs is poor. For instance, a two-bedroom unit priced at the Zillow median of $312,039 would likely generate a monthly rent of about $2,599, which is far above the FMR of $1260. Therefore, properties rented out at FMR levels would not be cash-flow positive for most investors. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the significant gap between FMR and actual rental prices. Investors seeking to capitalize on the rental market in Oxford should consider targeting properties that can be rented out at higher rates, rather than focusing solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Target Higher-Rate Rentals**: Given the high actual rental prices, investors should focus on acquiring properties that can command higher rents. A two-bedroom property priced at the Zillow median would likely generate a monthly rent of $2,599, which is more than double the FMR. This approach would ensure better cash flow and returns on investment. 2. **Consider Mixed-Income Developments**: To cater to both Section 8 voucher holders and other renters, developers might consider creating mixed-income developments. These projects can include a mix of units, some of which are priced at FMR levels for voucher holders, while others are priced higher to meet the needs of the broader rental market. 3. **Explore Government Subsidies**: Investors might explore government subsidies and programs that offer additional financial support beyond Section 8 vouchers. For example, the Low-Income Housing Tax Credit (LIHTC) program can provide incentives for developing affordable housing units, which could help bridge the gap between FMR and actual rental prices. #### Bottom Line For Section 8-focused investors, the ZIP code 38655 (Oxford, MS) is not a favorable market due to the significant gap between FMR and actual rental prices. The recommendation is to **skip** this ZIP code unless you can find properties that can be rented out at or near the FMR levels. Alternatively, consider diversifying your investment strategy by targeting higher-rate rentals or exploring mixed-income developments and government subsidy programs. In summary, the high actual rental prices and the tight market conditions make it challenging for Section 8 voucher holders to find affordable housing, and thus, this ZIP code is not recommended for investors primarily interested in Section 8 properties.

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.