Location: Bolivar County, MS | Metro: Bolivar 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 | $710 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,290 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,290 | $132,308 | 0.97% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 38725, located in Bolivar County, Mississippi, reveals a significant opportunity for cash flow generation. The HUD Fair Market Rent (FMR) for the metro area, set at $840 for fiscal year 2026, substantially exceeds the current market rent of $337 based on Census ACS data. This means that voucher tenants can easily cashflow at the FMR rate, providing a stable and predictable income stream for landlords and small-portfolio investors.
To further understand the investment potential, consider the median home value in ZIP 38725, which stands at $168,119. Using this figure, we can derive a rent-to-price ratio. At an annual rent of $4,044 ($337 per month), the ratio is approximately 2.4%, indicating a relatively low cost to rent compared to owning a property outright. However, when comparing this to the FMR-based annual rent of $10,080 ($840 per month), the ratio increases to about 6.0%, making rental properties more attractive relative to homeownership.
Despite the absence of specific data on days on market (DOM) and the percentage of homes that have been price-reduced, these metrics are less critical given the favorable cash flow dynamics. The substantial gap between the FMR and the market rent suggests that investors can maintain higher occupancy rates without needing to compete on price, thus reducing the likelihood of extended vacancies or price cuts.
The strongest angle for investors in this market is cash flow. With voucher tenants paying significantly above the market rate, landlords can expect to generate positive cash flow from their investments, making it an attractive option for those seeking steady returns in the short term.
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.