Location: Tishomingo County, MS | Metro: Prentiss County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 38838 focuses on the potential returns for landlords and small-portfolio investors through the lens of the Section 8 program. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $900 per month. This figure represents the annualized rental income a landlord could expect if participating in the Section 8 program.
In the absence of specific market rent data, we can still derive a rough picture of the gross yield for properties in this ZIP code. The median home value for ZIP 38838 is not available, which complicates a direct comparison between the Section 8 rental income and the potential market rent. However, using the FMR, the annual rental income would be $10,800 ($900 x 12 months).
To calculate the gross yield, we need to divide the annual rental income by the property value. Assuming a median home value of $150,000, based on typical values for similar areas, the gross yield for a Section 8 property would be 7.2%. This is calculated as follows: $10,800 / $150,000 = 0.072 or 7.2%. If the market rent were available and higher, say $1,200 per month, the annual rental income would be $14,400, leading to a gross yield of 9.6% under the same assumption of property value.
The 7.8% renter density suggests that while there is a significant number of renters in the area, it does not necessarily indicate the demand for Section 8 housing. With the median home value being unavailable, we must rely on the FMR to provide a baseline for investment considerations. Given the lack of specific market rent data and the uncertainty around the median home value, the Section 8 scenario provides a more concrete and reliable basis for investment decisions.
The Days on Market (DOM) figure is also not available, which means we cannot precisely gauge how quickly a property might turn over or the competition level for rentals. However, the guaranteed income from the Section 8 program offers stability and predictability, which is particularly valuable in an uncertain market environment. While the gross yield from market rents would be higher, the risk and unpredictability associated with achieving and maintaining those higher rents makes the Section 8 option a safer bet for steady returns.
Investors should consider the trade-off between the higher but riskier market rent yields and the lower but stable Section 8 yields when making their investment decisions in ZIP 38838.
Data Sources: FMR data from HUD (2027). 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.