Location: Panola 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 | $630 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $123,739 | 0.74% | D |
| 3BR | $1,140 | $159,982 | 0.71% | D |
| 4BR | $1,380 | $249,764 | 0.55% | F |
U.S. Census Bureau data (2024)
Sardis, MS, located in ZIP code 38666 within the Panola County, MS metro area, presents an interesting opportunity for inclusion in a Section 8 portfolio strategy. This area stands out as a potential cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) set at $870 for the metro area for fiscal year 2026 and the current market rent of $729. The difference of $141 per month represents a substantial margin that can be leveraged by landlords participating in the Section 8 program.
The median home value in Sardis, MS is $164,920, which indicates that property acquisition costs are relatively low compared to other metropolitan areas. This makes it easier for investors to achieve positive cash flow when renting properties under the Section 8 program, where rental rates are subsidized by the government. By securing rents at the FMR rate of $870, landlords can ensure they receive a higher rent than the local market average, thus enhancing their profitability.
While there is no specific data on price-cut shares or days on market (DOM), the 31.0% renter share and median income of $36,892 suggest that a significant portion of the population relies on rental housing and may have limited disposable income for homeownership. This supports the idea of Sardis, MS being a cash-flow anchor rather than an appreciation play or a diversifier. With a higher percentage of renters and lower median incomes, the demand for affordable rental housing is likely to remain stable, making it a reliable component of a Section 8 portfolio.
In conclusion, ZIP 38666 should be considered as a cash-flow anchor within a Section 8 portfolio strategy. The $141 monthly spread between the FMR and market rent, combined with the low median home value, provides a strong financial foundation for landlords looking to stabilize their income streams. The demographic factors further reinforce the suitability of this area for such a strategy, ensuring steady occupancy and rental income.
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.