Location: Clay County, MS | Metro: Calhoun 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 | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 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 |
|---|---|---|---|---|
| 2BR | $930 | $98,454 | 0.94% | C |
| 3BR | $1,220 | $143,882 | 0.85% | C |
| 4BR | $1,310 | $206,695 | 0.63% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 38851, located in Houston, MS, and part of the Clay County, MS metro area, does not favor landlords. The Fair Market Rent (FMR) set at $870 for the fiscal year 2026 contrasts sharply with the actual market rent reported by the Census ACS at $701. This discrepancy suggests that landlords may struggle to achieve rents that meet or exceed the FMR, leading to potential financial shortfalls.
Acquisition in ZIP 38851 is relatively affordable, with a median home value of $142,247. However, the lack of data on days on market (DOM) and the percentage of homes with price cuts indicates uncertainty regarding the ease of selling properties at their listed values. Landlords should proceed with caution, as the absence of these metrics could point to either a stable market or one where pricing adjustments are common but not quantified.
Tenant demand in ZIP 38851 is moderate. With a total population of 8,802, the area has a renter share of 27.3%. This implies a pool of approximately 2,400 potential renters, which can support a modest rental property portfolio but may limit expansion opportunities for larger-scale investments.
In summary, while the acquisition cost in ZIP 38851 is reasonable, the mismatch between the FMR and market rent presents a challenge for landlords aiming to maximize income. Tenant demand exists but is limited, suggesting that small-portfolio investors might find success here, but they must be prepared for lower-than-expected rental yields and potential market uncertainties due to incomplete data on property sales dynamics.
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.