Section 8 Fair Market Rent (FMR) for ZIP 38852 - 2027

Location: Tishomingo County, MS | Metro: Florence-Muscle Shoals, AL MSA

Investment Score for ZIP 38852

Monthly Rent (2BR)

$920

Median Price (2BR)

$186,986

1% Rule

0.49%

Annual Yield

5.9%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$700
1 Bedroom	$700
2 Bedrooms	$920
3 Bedrooms	$1,130
4 Bedrooms	$1,270
5 Bedrooms	$1,473
6 Bedrooms	$1,650
7 Bedrooms	$1,782
8 Bedrooms	$1,871

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$920	$186,986	0.49%	F
3BR	$1,130	$221,501	0.51%	F
4BR	$1,270	$329,924	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

8,721

Median Household Income

$52,942

Housing Units

5,244

Renter Percentage

19.1%

Occupancy Rate

84.1%

Renter Occupied

842

Iuka, Mississippi, located in the northeastern part of the state, is a small town with a population that largely relies on local industries and agriculture. The housing market in Iuka reflects a mix of homeowners and renters, with specific economic conditions influencing the rental sector.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 38852 for fiscal year 2024 is set at $860, providing a benchmark for rental prices in the area.
The actual market rent, as per the latest Census American Community Survey (ACS), stands at $635 for a typical rental unit, indicating a gap between the FMR and what tenants currently pay.
The median home value in Iuka is $203,085, suggesting that while homeownership is relatively affordable, it may also limit the number of potential renters due to lower property values compared to larger urban areas.
Renters make up 19.1% of the total housing units, showing a smaller but significant portion of the population that could benefit from rental properties.
The median income in the area is $52,942, which gives insight into the financial capacity of residents to afford housing costs, both rental and ownership.

The data points indicate that while the rental market in Iuka has a defined fair market rent, the actual rents charged are lower, reflecting the local economy's conditions. With a median income of $52,942, there is a balance between affordability and demand, particularly among the 19.1% of residents who prefer renting. However, the relatively low median home value suggests that the area might have limited growth potential compared to more urbanized regions. For investors, this means that while steady returns can be expected from rental properties, rapid appreciation in property values is unlikely. Therefore, focusing on maintaining a competitive rental rate around the market average and targeting the existing renter base would be a prudent strategy.

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.