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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,170 | $236,376 | 0.49% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 38857 presents a nuanced landscape for both landlords and small-portfolio investors. With a median home value of $219,345, the area offers an entry point into homeownership that remains accessible to many potential buyers. The fact that only 0.2% of listings have reduced their prices signals a stable market where sellers maintain pricing power. This stability is further reflected in the median days on market (DOM), which, though not quantified here, typically indicates a brisk pace of sales when reductions are minimal.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $990, while the current market rent stands at $1,002. This suggests that rental properties in ZIP 38857 are currently priced slightly above the government's benchmark, indicating a robust demand for rental housing. However, it also points to a potential challenge if market rents begin to align more closely with the FMR, reducing profit margins for landlords.
For long-term investors, the setup implies a cautious approach. The median home value and the low percentage of price reductions suggest that the market is unlikely to experience significant appreciation over the next 12-24 months. Instead, the focus should be on maintaining steady cash flows through rentals and preserving capital value rather than expecting substantial growth. Investors should consider diversifying their portfolios to include areas with higher projected appreciation rates to balance potential stagnation in ZIP 38857.
The market dynamics in ZIP 38857 indicate a scenario where landlords can expect to maintain current rents but should be prepared for possible adjustments to meet future FMR levels. Small-portfolio investors should carefully evaluate the balance between rental income and property values, understanding that rapid appreciation is not likely in the near term. This environment supports a buy-and-hold strategy focused on consistent returns rather than speculative gains.
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.