Location: Sunflower County, MS | Metro: Humphreys 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 | $1,260 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,260 | $117,303 | 1.07% | B |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 38753 provides insight into the potential rental income and property values for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $850 annually for fiscal year 2026 and the median home value of $123,798, we can derive the implied gross yields for both the Section 8 scenario and the market rent scenario.
In the Section 8 scenario, using the annualized FMR of $850, the implied gross yield is calculated as follows:
For the market rent scenario, with the average market rent at $590 annually based on Census ACS data, the implied gross yield is:
The higher gross yield in the Section 8 scenario compared to the market rent scenario suggests that participating in the Section 8 program could be more financially beneficial for landlords in ZIP 38753. However, the reality of the situation must also consider the 36.0% renter density and the fact that the days on market (DOM) data is not available. These factors can influence the occupancy rates and the speed at which properties are rented out.
Given the 36.0% renter density, it's important to note that while there is a significant portion of renters in the area, nearly two-thirds of the population owns their homes. This means that landlords should expect competition from homeowners who might prefer to live in their own properties rather than renting them out. The lack of DOM data makes it difficult to assess how quickly properties can be leased, but it is a critical metric for understanding the time it takes to generate rental income.
While the Section 8 program offers a higher annualized rent of $850, leading to an implied gross yield of about 0.7%, the market rent of $590 annually results in a lower gross yield of around 0.5%. Landlords should weigh these figures against the local housing market dynamics, including the percentage of renters and the typical leasing period, to determine the most realistic and profitable approach for their investment strategy.
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.