Location: Pontotoc County, MS | Metro: Itawamba 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 | $840 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $149,716 | 0.63% | D |
| 3BR | $1,200 | $218,894 | 0.55% | F |
| 4BR | $1,340 | $353,010 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 38804 in Tupelo, MS, represents a significant rental market opportunity for landlords and small-portfolio investors. With a population of 16,693, nearly 36.3% of residents are renters, indicating a substantial demand for rental properties. This percentage suggests that the area is renter-heavy rather than dominated by homeowners.
The median household income in this ZIP code stands at $64,420, while the average market rent is $1,287 per month. This means that the typical rent consumes approximately 20% of the local median income. In comparison, the Fair Market Rent (FMR) for the metro area is set at $990 (for FY 2026), which is notably lower than the market rent, suggesting a higher potential for Section 8 voucher usage among tenants.
To further analyze the suitability of this ZIP code for Section 8 tenants, it's important to consider the income-to-rent ratio. Given the FMR of $990, a landlord can expect that many tenants will be looking for properties that fall below or around this threshold. The disparity between the FMR and the actual market rent indicates a strong need for affordable housing options, making it likely that there is deep voucher demand in the area.
A landlord in ZIP 38804 should anticipate a tenant pool that includes individuals and families who rely on Section 8 vouchers to afford their living spaces. These tenants will generally have incomes below the median, seeking out properties that align with the FMR guidelines. It is crucial for landlords to understand the administrative requirements and compliance measures associated with accepting Section 8 tenants, as this can impact the overall management and profitability of rental properties.
In conclusion, ZIP 38804 presents a robust rental market with a high percentage of renters and a clear demand for affordable housing solutions. Landlords can expect a tenant base that frequently utilizes Section 8 vouchers, necessitating an understanding of federal housing assistance programs and their implications on property management practices.
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.