Section 8 Fair Market Rent (FMR) for ZIP 38751 - 2027

Location: Washington County, MS | Metro: Sunflower County, MS

Investment Score for ZIP 38751

A+
Monthly Rent (2BR)
$960
Median Price (2BR)
$58,001
1% Rule
1.66%
Annual Yield
19.86%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$680
1 Bedroom$730
2 Bedrooms$960
3 Bedrooms$1,320
4 Bedrooms$1,360
5 Bedrooms$1,578
6 Bedrooms$1,767
7 Bedrooms$1,908
8 Bedrooms$2,003

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $960 $58,001 1.66% A+
3BR $1,320 $99,961 1.32% A
4BR $1,360 $119,688 1.14% B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
9,949
Median Household Income
$44,699
Housing Units
4,429
Renter Percentage
46.5%
Occupancy Rate
86.5%
Renter Occupied
1,782

The dynamics of the ZIP 38751 market, centered around Indianola, Mississippi, reveal a housing landscape where demand is closely aligned with supply, but leans slightly towards being renter-driven. The Fair Market Rent (FMR) for the area stands at $900, as projected for the fiscal year 2026, while the actual market rent, according to the Census ACS, is lower at $756. This suggests that rental properties are priced below the benchmark set by HUD, potentially indicating a competitive rental market.

The 0.2% price-cut share indicates that very few homes are being discounted, which implies that the housing market is stable and sellers can typically achieve their asking prices without significant adjustments. However, the median home value of $103,068 is relatively low, suggesting that homeownership is affordable, but it also raises questions about the overall wealth levels and property values in the area.

A notable 46.5% of households in ZIP 38751 are renters, a figure that speaks to the long-term housing pressure in the area. With nearly half of all residents renting, there is a sustained need for rental properties, which could translate into steady demand for landlords and small-portfolio investors. This high renter share might be due to the affordability of homes, but it also points to potential challenges in transitioning from renting to owning, possibly due to financial constraints or other socio-economic factors.

The combination of a stable rental market, low price-cut share, and a high renter share suggests that ZIP 38751 is experiencing a balanced but slightly demand-oriented housing environment. Landlords and small-portfolio investors should take note of the competitive rental rates and the persistent need for rental units, which could offer opportunities for consistent income generation. However, the relatively low median home value also highlights the importance of understanding the local economy and the potential risks associated with lower property values.

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.