Location: Pontotoc County, MS | Metro: Lee 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 | $920 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $255,379 | 0.54% | F |
U.S. Census Bureau data (2024)
28.5% of residents in ZIP code 38826 are renters, indicating a significant demand for rental properties in the area. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,100, which represents the upper limit for Section 8 housing vouchers. Meanwhile, the actual market rent, as measured by ZORI, stands at $1,631, suggesting that there's a gap between what tenants can afford with Section 8 vouchers and the prevailing market rates.
$75,862 is the median income for this ZIP code, which is below the national average and supports the notion that many households rely on assistance programs such as Section 8 to secure affordable housing. With a median home value of $255,741, it's evident that homeownership is less attainable for lower-income families, thereby increasing their dependency on rental markets and government subsidies.
The 0.2% price-cut share reveals that very few listings in this area have been reduced in price, implying a relatively stable and healthy market without significant overpricing or competition leading to price drops. However, due to the lack of data on the average days on market (DOM), it's challenging to provide a comprehensive analysis of how quickly properties are rented out in this area.
In summary, for landlords and small-portfolio investors in ZIP 38826, the current landscape presents an opportunity to serve a substantial portion of the population with rental units priced at or near the $1,100 FMR threshold. Given the higher market rents, there is potential to attract tenants willing to pay above the voucher limits, but also a risk of leaving units vacant if pricing is not aligned with the financial capabilities of local residents. The low price-cut share indicates that maintaining competitive pricing should be feasible without resorting to discounts. Verdict: Section 8 is viable but requires careful pricing strategies to balance affordability and profitability.
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.