Location: Marshall County, MS | Metro: Marshall County, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38661, located in Marshall County, Mississippi, reveals critical insights for landlords and small-portfolio investors.
The rent math does not work in favor of landlords. The Fair Market Rent (FMR) for the area, set at $1090 for fiscal year 2024, does not align with the market rent due to insufficient data. This means that while the government benchmark suggests a certain rent level, actual market conditions could be significantly different, potentially leading to lower-than-expected rental incomes.
Acquisition is relatively affordable for investors. With a median home value of $231,233, the cost of purchasing properties in this area is within a reasonable range. However, without specific data on the number of days on the market (DOM) and the percentage of homes that were sold after a price reduction, it's challenging to provide a comprehensive assessment of the property market's liquidity and competitiveness.
Tenant demand is present but limited. The ZIP code has a population of 2,126, with 12.5% of residents being renters. This indicates that while there is a pool of potential tenants, the size of the market may be too small to support a high volume of rental properties. Landlords should carefully consider the competition and the local economy when assessing the feasibility of rental investments in this area.
In conclusion, ZIP 38661 offers an affordable entry point for property acquisition, but the mismatch between FMR and market rent, combined with a modest tenant demand, presents challenges for achieving sustainable rental income. Investors must proceed with caution, ensuring they understand the local rental dynamics and are prepared for potentially lower returns. The success of rental investments here will largely depend on the ability to attract and retain tenants within the constraints of the current market conditions.
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.