Location: Lafayette County, MS | Metro: Lafayette 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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $413,911 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38673 in Lafayette County, Mississippi reveals several key points that are crucial for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,260. However, the lack of specific market rent data (N/A) makes it challenging to directly compare and conclude on the viability of rental income. To make an informed decision, investors should seek additional local market data to ensure their rental rates align with or slightly undercut the FMR.
Secondly, regarding the affordability of acquisition, the median home value stands at $387,642. This figure suggests that purchasing properties in this ZIP code requires a significant capital investment. Without day DOM (Days On Market) and the percentage of homes that had to reduce their asking price (price-cut share), it's difficult to gauge how competitive the housing market is and if there are opportunities for negotiation or waiting for better deals.
The third question concerns tenant demand. With a population of 1,056 and a renter share of 4.5%, the number of potential tenants is relatively low. This implies a limited pool of renters, which could affect occupancy rates and the speed at which vacancies can be filled. Investors should consider these demographic factors when evaluating the long-term sustainability of rental properties in this area.
In summary, while the median home value indicates a high barrier to entry for property acquisition, the lack of detailed market rent data complicates the assessment of rental income viability. Additionally, the low population and renter share suggest a niche market with limited tenant demand. Landlords and investors must carefully weigh these factors and possibly seek supplementary local insights before committing to acquisitions in ZIP 38673.
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.