Section 8 Fair Market Rent (FMR) for ZIP 38754 - 2027

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

Investment Score for ZIP 38754

N/A

Monthly Rent (2BR)

$920

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$770
1 Bedroom	$840
2 Bedrooms	$920
3 Bedrooms	$1,180
4 Bedrooms	$1,280
5 Bedrooms	$1,485
6 Bedrooms	$1,663
7 Bedrooms	$1,796
8 Bedrooms	$1,886

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
3BR	$1,180	$82,732	1.43%	A
4BR	$1,280	$138,297	0.93%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,231

Median Household Income

$38,173

Housing Units

553

Renter Percentage

47.3%

Occupancy Rate

92.0%

Renter Occupied

241

The ZIP code 38754, located in Tennessee, offers a stable and growing rental market for landlords and small-portfolio investors. The area is characterized by a mix of residential neighborhoods and access to local amenities, making it attractive for both long-term residents and newcomers.

The Fair Market Rent (FMR) for a one-bedroom apartment in the metro area for fiscal year 2026 is set at $850, providing a benchmark for rental pricing.
The average market rent for properties in ZIP 38754, according to the Census American Community Survey, is $645. This indicates that there is potential for rental price increases to align with the FMR.
The median home value in the area stands at $95,405, which is relatively low compared to other regions, making property acquisition potentially affordable for investors.
Renters make up 47.3% of the population in ZIP 38754, suggesting a strong demand for rental properties.
The median income in the area is $38,173, indicating that tenants may be sensitive to rent prices, thus underscoring the importance of competitive pricing.

Investors looking to enter the market in ZIP 38754 should consider the potential for rental price appreciation towards the FMR level, given the current lower market rents. With a significant portion of the population renting and a relatively low median home value, this area presents opportunities for acquiring properties at a good price point. However, the median income being on the lower side suggests that maintaining competitive rental rates will be crucial for occupancy and cash flow stability. Overall, the ZIP code offers a balanced investment opportunity with room for growth in rental income while catering to a renter-heavy demographic.

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.