Section 8 Fair Market Rent (FMR) for ZIP 38802 - 2027

FY 2027 Fair Market Rent Rates

A skeptical investor might raise several concerns regarding the real estate market in ZIP code 38802, particularly related to the Fair Market Rent (FMR) of $990 for the fiscal year 2026, which is set by HUD for the metro area.

• Will FMR $990 cover the mortgage on a home?: The FMR figure does not account for the median home value in the area, which is not provided. However, given that some rental properties outside ZIP 38802 are priced at over $1,200 per month, it's likely that the FMR will not be sufficient to cover the mortgage on a typical home. Investors should consider other sources of income or subsidies if they plan to purchase property in this area.
• Is there enough renter demand at N/A%?: The rental vacancy rate is not specified in the data provided. However, the presence of multiple rental listings suggests a reasonable level of demand. For instance, the Oak Creek Apartments, located in Tupelo, MS 38801, offers a range of units from 1 to 3 bedrooms at prices between $1,200 and $1,445 per month. This indicates that there is a market for various types of rental properties, though the exact vacancy rate remains unknown.
• Will vouchers keep pace with market rents?: Without specific data on voucher amounts or their trends in ZIP 38802, it's difficult to definitively state whether they will keep up with market rents. Given the rental prices seen in the surrounding areas, which exceed the FMR, there is a risk that vouchers may not fully cover the cost of renting a unit. Landlords and small-portfolio investors should prepare for potential shortfalls or consider offering lower-cost units to ensure affordability for voucher holders.

The data available highlights the need for caution when investing in ZIP 38802. While there appears to be demand for rental properties, the lack of specific information on median home values and rental vacancy rates leaves key questions unanswered. It's advisable to conduct further research and consult local real estate experts to make informed decisions.

Data Sources: FMR data from HUD (2027).

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.