Location: Lee County, MS | Metro: Itawamba 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 | $800 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,210 |
| 5 Bedrooms | $1,404 |
| 6 Bedrooms | $1,572 |
| 7 Bedrooms | $1,698 |
| 8 Bedrooms | $1,783 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $207,236 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 38843 presents several challenges for potential Section 8 landlords. Firstly, the tenant turnover rate is likely to be higher due to the discrepancy between the market rent of $779 and the Fair Market Rent (FMR) of $990 for FY 2026 in the metro area. This gap suggests that tenants might struggle to find housing outside of subsidized programs, leading to frequent moves as they seek more affordable options.
Secondly, there is significant exposure to vacancies, as the days on market (DOM) is listed as N/A. This indicates a lack of recent data on how long properties typically remain vacant before being rented, which can pose a risk when relying on a steady stream of rental income.
Lastly, there is a notable risk associated with deferred maintenance. With a typical home value of $161,581 and a median income of $56,028, homeowners may have limited financial capacity to invest in property upkeep, potentially resulting in lower-quality living conditions that could impact tenant satisfaction and retention.
However, these risks are mitigated by the high renter share in the area, which stands at 25.9%. High renter density usually correlates with higher demand for rental vouchers, making it easier to fill units with Section 8 tenants once the property is registered.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 38843 is moderate.
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.