Location: Tunica County, MS | Metro: Tunica 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 | $960 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $150,263 | 0.87% | C |
| 4BR | $1,430 | $206,596 | 0.69% | D |
U.S. Census Bureau data (2024)
In ZIP code 38676, there are several factors that could pose challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern when renting properties at the market rate of $927 compared to the Federal Market Rent (FMR) of $1100 for fiscal year 2024. This disparity suggests that tenants might prefer higher-rental-value properties, leading to frequent changes in occupancy. Additionally, the vacancy exposure is heightened due to the lack of available data on days on market (DOM), which indicates uncertainty in how quickly properties can be rented out.
The deferred maintenance exposure is another critical issue. With a typical home value of $142,010 and a median income of $33,943, many residents may struggle to afford necessary repairs and maintenance, potentially leaving properties in disrepair over time. This financial strain on tenants can translate into lower-quality upkeep of rental units, impacting the overall property condition and requiring more landlord intervention.
However, these risks must be weighed against the high concentration of renters in the area, represented by a 51.0% renter share. High renter density often correlates with increased demand for housing vouchers, which can provide a steady stream of tenants willing to pay the required portion of their income toward rent. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 38676 is moderate. While there are notable risks related to tenant turnover and deferred maintenance, the high renter share offers a promising counterbalance through consistent voucher demand.
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.