Location: Tishomingo County, MS | Metro: Alcorn 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 | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $200,595 | 0.56% | F |
| 4BR | $1,200 | $298,129 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 38834 is situated in a neighborhood that is predominantly residential, with a significant portion of its population renting their homes. With a total population of 27,308, nearly 36.2% are renters, indicating a robust demand for rental properties. The median household income in this area is $50,356, which suggests that residents have a moderate level of financial stability. However, the median home value stands at $181,201, reflecting a relatively affordable housing market.
From an investment perspective, the rent economics in ZIP 38834 present both opportunities and challenges. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $840, while the current market rent, according to the Census ACS, is $728. This discrepancy between the FMR and the actual market rent implies that there is room for growth, particularly for those who can offer well-maintained properties that justify higher rents closer to the FMR threshold.
Given these conditions, ZIP 38834 could be appealing to both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's reliance on Section 8 vouchers means a steady stream of rental income with less concern over tenant turnover, as long as they comply with HUD standards and maintain their properties adequately. On the other hand, value-add buyers might find it profitable to invest in property improvements, thereby positioning themselves to capture a larger share of the rental market, especially as the gap between the FMR and current market rent narrows.
In summary, ZIP 38834 offers a balanced mix of affordability and potential for growth, making it suitable for various types of real estate investors. Whether you're looking for a low-maintenance investment strategy or a more active approach, the economic indicators suggest that this neighborhood could provide a solid foundation for achieving your investment goals.
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.