Location: Union 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 | $780 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,140 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $238,540 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 38828, located in Union County, Mississippi, presents an interesting investment opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, while the Census ACS reported market rent stands at $867. This indicates that voucher tenants can cashflow at the FMR, offering a positive outlook for rental properties in this area.
To further analyze the investment potential, consider the median home value in ZIP 38828, which is $194,892. Using the HUD FMR of $990, we can calculate the rent-to-price ratio. A property valued at $194,892 would generate approximately $11,880 in annual rent based on the FMR, equating to a rent-to-price ratio of about 6.1%. This ratio suggests that the rental income is relatively high compared to the purchase price, making it a viable option for investors seeking steady cash flow.
The days on market (DOM) and price-cut share data are not available for this ZIP code. However, given the discrepancy between the HUD FMR and the actual market rent, it is likely that voucher holders will be able to cover their rent without significant financial strain, thus enhancing the stability of rental income. The lack of price-cutting data implies that sellers are not frequently reducing their asking prices, which could indicate a strong seller's market or stable pricing environment.
The strongest investor angle in ZIP 38828 is cash flow. With voucher tenants paying above the market rent, landlords can expect consistent and reliable income from their investments. Additionally, the favorable rent-to-price ratio supports the idea that purchasing properties in this area can lead to solid financial returns through rental income alone.
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.