Location: Prentiss County, MS | Metro: Itawamba County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38856 reveals a unique balance between yield and stability that positions it as a moderate opportunity for landlords and small-portfolio investors.
On the yield axis, the potential rental income is notably higher than the market average but falls short of the maximum possible income under the Fair Market Rent (FMR) guidelines. The market rent stands at $530, while the FMR for the metro area in fiscal year 2026 is $1,270. This indicates that there is room to increase rents to capture a higher yield, though it's important to note that achieving the FMR may be challenging given local market conditions.
The median home value in ZIP 38856 is $156,883, which suggests that properties in this area are relatively affordable. However, this also implies that property appreciation might not be as robust compared to higher-priced markets, potentially limiting long-term capital gains.
Moving to the stability axis, the percentage of renters at 8.6% is quite low, indicating that the majority of residents are homeowners. This could mean less demand for rental properties, which might affect occupancy rates and cash flow consistency. Additionally, the lack of data on days on market (DOM) makes it difficult to assess how quickly rental units can be filled when they become vacant.
The median household income of $66,686 provides insight into the economic health of the area. While this figure is not exceptionally high, it does suggest that tenants have the financial means to cover their rent, contributing to a stable cash flow once they are secured.
Given these factors, ZIP 38856 is best classified as a steady-cashflow zone rather than a high-yield/low-stability market. The ability to achieve higher rents closer to the FMR of $1,270 is present, but the lower percentage of renters and uncertain vacancy rates temper the potential for high yields. Instead, the focus should be on maintaining consistent occupancy and leveraging the relatively low property values to secure a steady stream of rental income.
To summarize, the key figures driving this classification are:
These indicators point towards a market where stability and steady cash flow take precedence over aggressive yield targets.
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.