Section 8 Fair Market Rent (FMR) for ZIP 38803 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 38803, located in Lee County, Mississippi, are based on the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $990 per month for fiscal year 2026. This figure represents the maximum amount that a landlord can receive from the Housing Choice Voucher program for a two-bedroom unit in this specific ZIP code.

To understand what a landlord will actually receive once the tenant's portion and utility allowances are factored in, we need to break down the components. The tenant is responsible for paying approximately 30% of their adjusted income towards rent, while the remaining amount is covered by the voucher. Utility allowances are also part of the calculation but vary based on the size of the unit and location. For ZIP 38803, the utility allowance for a two-bedroom apartment is included in the overall $990 limit.

A typical scenario would be if a tenant has an adjusted monthly income of $1,000. In this case, they would pay $300 towards rent, leaving the voucher to cover the remaining $690 of the $990 total rent. This means the landlord receives a total of $990, with the voucher covering the majority of it. However, if the local market rent were higher than the SAFMR, there would be a reimbursement gap where the landlord does not receive the full market rent. Conversely, if the market rent is lower than the SAFMR, the landlord could potentially receive the full market rent plus some of the difference up to the $990 limit, creating a surplus.

In ZIP 38803, since the local market rent is listed as N/A, we cannot determine if there is a surplus or a gap without additional information. But using the SAFMR of $990 as our benchmark, landlords should expect to receive this amount for a two-bedroom unit when a tenant uses a Section 8 voucher. It is crucial for landlords to know that the SAFMR is specifically tailored to this ZIP code, ensuring that it reflects the actual rental market conditions more accurately than a broader metro or county-level rate might.

To summarize, the typical reimbursement for a two-bedroom unit in ZIP 38803 would be $990, with the exact split between tenant payment and voucher reimbursement depending on the tenant's income. Without specific market rent data, it is impossible to calculate the exact reimbursement gap or surplus, but landlords can rely on the $990 SAFMR as the standard for voucher payments.

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.