Location: Union 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 | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $234,586 | 0.54% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38849 reveals a market that offers a moderate balance between yield and stability. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, which is higher than the local market rate of $908. This suggests that properties in this ZIP code can potentially command rents above the average market rate, providing an opportunity for slightly higher returns. However, when compared to the median home value of $202,924, the rental rates indicate a modest yield. Landlords should expect a reasonable profit margin but not the high yields typically associated with 'flip-style' markets.
Moving to the stability axis, the ZIP code shows a renter population comprising 14.8% of the total housing units, which is relatively low. This figure implies that there might be less demand for rental properties, potentially leading to longer vacancy periods. The median household income in the area is $76,019, indicating that tenants have a stable income level to support their rent payments. However, the lack of data on days on market (DOM) suggests uncertainty about how quickly rental properties can be filled, which is a key indicator of stability in the rental market.
Given these figures, ZIP 38849 leans towards being a steady-cashflow zone. While it does not offer the high yields seen in more dynamic markets, the presence of a stable tenant base with reliable income levels supports consistent cash flow. The slight premium on FMR over market rate provides a small cushion for profitability. For small-portfolio investors looking for long-term, stable investments, this ZIP code could be a suitable choice. However, those seeking rapid capital appreciation or high short-term yields may find other markets more appealing.
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.