Location: Quitman County, MS | Metro: Tunica County, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38670 reveals a unique balance between yield and stability that could be particularly appealing to small-portfolio investors and landlords seeking to optimize their investments. On the yield axis, the Federal Market Rent (FMR) for 2024 stands at $1120, which is significantly higher than the market rent of $686. This indicates a potential opportunity to charge rents above the market average, thus increasing the profitability of properties in this area.
To further understand the yield potential, it's important to note that the home value data is currently unavailable. However, given the disparity between the FMR and market rent, there is a strong case for higher rental yields. Landlords can capitalize on this by ensuring their properties are well-maintained and competitive, potentially attracting tenants willing to pay closer to the FMR.
Moving to the stability axis, ZIP 38670 shows a rental population of 17.5%, suggesting a moderate reliance on rental income as a source of housing. The absence of data regarding days on the market (DOM) introduces some uncertainty, but the median household income of $38,342 provides a stable economic foundation for the area. This income level supports a reasonable expectation of consistent rental payments, reducing the risk of default.
The combination of these factors places ZIP 38670 in a category that leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. While the potential for high yields exists due to the favorable FMR-to-market-rent ratio, the moderate percentage of renters and the presence of a stable median income suggest a lower risk environment compared to areas with higher volatility.
Investors should consider the local market dynamics and the quality of their properties when deciding whether to pursue a strategy focused on high yields or steady cash flow. Given the available data, the optimal approach might involve a mix of both, aiming to leverage the higher FMR while maintaining a focus on tenant retention and property management practices that ensure long-term stability.
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.