Location: Union County, MS | Metro: Pontotoc County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The ZIP code 38841, located in Tennessee, presents an interesting scenario for both renters and landlords. The median income here stands at $54,007, which is crucial when considering the local rental market. Renters face a significant challenge with the market rate set at $883 according to the Census ACS data. This figure represents a substantial portion of their income, making it difficult for many households to find affordable housing without financial assistance.
To put this into perspective, let's look at the Federal Market Rent (FMR) standard for the metro area, which is set at $900 for fiscal year 2026. This means that the Housing Choice Voucher program, commonly known as Section 8, will pay up to $900 per month towards rent. However, even this amount is close to the market rate of $883, leaving little room for additional costs such as utilities or other expenses that renters might incur.
The ZIP code has a rental population of 3,963, representing 39.6% of the total population. This high percentage of renters indicates a competitive market for landlords. The affordability gap between the median income and the market rate rent suggests that there is a considerable demand for subsidized housing options. Landlords who accept vouchers can tap into this segment of the market, ensuring steady tenants and a reliable source of income.
For landlords considering whether to adopt a voucher versus cash-pay strategy, the data points to a strategic advantage in accepting vouchers. While cash-paying tenants might offer slightly higher rents, the stability and predictability of voucher payments make them a valuable option. Moreover, the limited supply of affordable units means that landlords who accept vouchers can attract a consistent stream of tenants, reducing vacancy rates and providing a more stable income stream over time.
In conclusion, landlords in ZIP 38841 should seriously consider accepting vouchers as part of their rental strategy. Given the local median income and the proximity of market rate rents to the FMR standard, there is a clear demand for affordable housing. By aligning with the Housing Choice Voucher program, landlords can secure long-term, stable tenancy while contributing to the solution of the affordability gap in the area.
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.