Location: Tallahatchie County, MS | Metro: Leflore 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 | $660 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $52,764 | 1.72% | A+ |
| 3BR | $1,250 | $76,688 | 1.63% | A+ |
U.S. Census Bureau data (2024)
The market in ZIP code 38737, Drew, MS, reflects a dynamic equilibrium between rental and homeownership. The Fair Market Rent (FMR) stands at $840, which is indicative of the rental subsidy benchmark set by HUD for the fiscal year 2026. In contrast, the actual market rent, according to the Census Bureau's American Community Survey, is lower at $709. This suggests that while the subsidized rent is higher, the natural market forces are driving rents to a more affordable level.
The median home value in the area is $79,807, a figure that speaks to the overall affordability of homeownership in Drew. However, the lack of data on price-cut shares and days on market (DOM) indicates an absence of significant fluctuations in property values or sales times, which could be due to a stable housing market or limited data availability.
A notable statistic is the 55.5% renter share of the population. This high percentage of renters points to a strong and persistent demand for rental properties, a trend that can exert long-term pressure on the housing market. It implies that many residents prefer or are compelled to rent rather than buy, possibly due to financial constraints or transient populations. This dynamic supports the viability of rental investments in the area, as it ensures a steady pool of potential tenants.
The interplay between the relatively low market rent and the higher FMR, alongside the substantial renter share, suggests that demand for rental units is robust. Landlords and small-portfolio investors should find this environment conducive to maintaining occupancy rates and achieving reasonable returns. The high proportion of renters also signals that there might be opportunities for first-time homebuyers to enter the market, given the modest median home value.
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.