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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,170 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,170 | $184,815 | 0.63% | D |
U.S. Census Bureau data (2024)
A household in ZIP code 38663, with a median income of $52,141, faces significant challenges in affording the market rate rent of $770. This figure represents the average rental cost based on Census American Community Survey (ACS) data. To put this into perspective, the household would need to dedicate approximately 18% of their annual income to cover these expenses alone.
Comparatively, the Fair Market Rent (FMR) as set by HUD for the fiscal year 2026 stands at $840. This is the amount that housing vouchers will typically cover, which is higher than the current market rate. Therefore, tenants with vouchers could potentially find it easier to secure housing within this ZIP code, as the voucher amount exceeds the typical market rent.
The ZIP code has a population of 11,319, with 25.3% being renters. This means there are around 2,865 renters in the area. The affordability gap between the median income and the market rate rent suggests that many households may struggle to pay without financial assistance. For landlords, this implies a competitive market where securing tenants who can consistently pay market rates might be challenging.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. Given the high FMR compared to the market rate, accepting housing vouchers can provide a stable source of income. It also opens up opportunities to serve a larger portion of the renting population who might otherwise be unable to afford the rent. Landlords should weigh the benefits of guaranteed payments against the administrative complexity of working with vouchers. However, the potential for increased occupancy and long-term tenant stability makes it a compelling option.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.