Location: Yalobusha County, MS | Metro: Panola County, MS
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 | $750 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $130,791 | 0.82% | C |
| 3BR | $1,350 | $200,049 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 38658 (Pope, MS) reveals some interesting dynamics when comparing the Federal Market Rent (FMR) and the actual market rent figures. To begin, let's annualize the 2-bedroom FMR of $1,110, which comes out to $13,320 per year. Given the median home value of $190,971, the implied gross yield based on the FMR would be approximately 7%. This calculation is derived by dividing the annualized FMR by the median home value.
Next, let's look at the market rent figure of $980 for a 2-bedroom unit, which annualizes to $11,760. Using the same median home value, the implied gross yield based on market rent would be about 6.16%. The difference between these two yields is significant, indicating that landlords participating in the Section 8 program can expect a slightly higher return on investment compared to those relying solely on market rents.
Given the 28.0% renter density in Pope, MS, it's important to consider how realistic these yields are. While the FMR scenario provides a higher gross yield, the actual market conditions suggest that landlords might face challenges in attracting tenants willing to pay the FMR. The N/A-day Days on Market (DOM) indicates incomplete data, which could mean either very quick sales or an unusual situation that affects property turnover rates.
In conclusion, while the FMR-based gross yield of 7% offers a more attractive return, the market rent-based gross yield of 6.16% is likely more reflective of the current rental environment in ZIP 38658. Landlords should weigh the potential benefits of the higher FMR yield against the practical considerations of tenant availability and market demand.
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.