Section 8 Fair Market Rent (FMR) for ZIP 38801 - 2027

Investment Score for ZIP 38801

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	$950
1 Bedroom	$970
2 Bedrooms	$1,090
3 Bedrooms	$1,380
4 Bedrooms	$1,450
5 Bedrooms	$1,682
6 Bedrooms	$1,884
7 Bedrooms	$2,035
8 Bedrooms	$2,137

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,380	$217,812	0.63%	D
4BR	$1,450	$334,133	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 38801 in Pontotoc County, Mississippi, can be considered a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,010, which is notably lower than the market rent of $1,244. This creates a positive spread that allows landlords to maintain a steady income even when participating in the Section 8 program, where rental rates are capped at the FMR level.

The median home value in ZIP 38801 stands at $197,128. While this figure is relatively low compared to many other areas across the United States, it does not necessarily indicate strong appreciation potential. The data suggests a price-cut share of 0.2%, which implies that listings may need to be discounted to sell, and an N/A-day Days on Market (DOM) indicates that properties might not move quickly, making it less suitable as an appreciation play.

ZIP 38801 has a renter share of 37.7%, indicating a significant portion of the population relies on rental housing. This aligns well with the goals of a Section 8 portfolio, which aims to serve tenants who qualify for government assistance due to their income levels. The median income in the area is $62,946, which is below the national average, further supporting the viability of Section 8 tenants in this market.

In summary, ZIP 38801 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Landlords can leverage the difference between the FMR ($1,010) and the market rent ($1,244) to ensure stable returns, while the relatively low median home value ($197,128) helps manage capital expenditures and property acquisition costs. Although appreciation may not be a primary driver, the strong tenant demand and alignment with Section 8 criteria make this ZIP code a reliable component of a diversified investment portfolio.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.