Location: Tippah County, MS | Metro: Tippah County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in Section 8 properties in ZIP code 38674 are significant and must be carefully considered. Firstly, tenant turnover poses a notable challenge, with market rents being undefined but the Fair Market Rent (FMR) for fiscal year 2026 set at $840 in the metropolitan area. This discrepancy can lead to difficulties in attracting and retaining tenants who qualify for the program.
Vacancy exposure is another concern, particularly when the days on market (DOM) is not specified. This lack of data suggests that there might be periods where units remain unoccupied, leading to financial strain until a new tenant is found. Additionally, the typical home value in the area stands at $156,292, while the median household income is $66,049. This income level may limit the ability of residents to cover the gap between their income and the required rent, potentially increasing the risk of deferred maintenance due to insufficient funds.
However, these risks are somewhat mitigated by the high concentration of renters in the area. With a 5.3% renter share, the demand for rental properties, including those supported by Section 8 vouchers, is likely to be robust. High renter density typically translates into a higher number of individuals seeking housing assistance, thereby ensuring a steady pool of potential tenants.
In conclusion, despite the challenges associated with tenant turnover, vacancy exposure, and deferred maintenance, the strong demand for rentals in ZIP code 38674 makes it a moderate risk investment for a first-time Section 8 landlord. The key to success will lie in effectively managing these risks through strategic property management practices and maintaining competitive pricing relative to the FMR.
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.