Location: Monroe 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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $196,078 | 0.61% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 38858 hinges on analyzing both its yield potential and stability metrics. Yield is determined by comparing the Fair Market Rent (FMR) for the metro area against the actual market rent and average home values. For FY 2026, the FMR for the metro area stands at $990, while the local market rent is $826. This discrepancy suggests that there is room for rental price adjustments upward to match the metro average, indicating a moderate yield potential. However, the average home value of $152,736 adds a significant capital investment, which must be considered when calculating overall returns.
Stability can be gauged by looking at the percentage of renters, the number of days on market (DOM), and median income levels. In ZIP 38858, 23.4% of residents are renters, which is a relatively low figure, pointing towards less stable demand for rentals compared to areas with higher percentages of renters. The median household income of $56,037 provides insight into the financial capability of tenants, suggesting a moderate ability to pay higher rents but also highlighting potential limitations during economic downturns.
Based on these figures, ZIP 38858 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents an area where opportunities exist for moderate yield improvements through strategic pricing adjustments. However, the relatively low percentage of renters and median income levels indicate a need for caution regarding long-term stability. Landlords and small-portfolio investors should consider these factors carefully, ensuring that any increase in rental prices aligns with the local economic conditions to maintain occupancy rates and avoid vacancies.
To summarize, the analysis points to a market where careful management can achieve better yields without significantly compromising stability. Investors should focus on properties that offer good value relative to the FMR and market rent, and be prepared to adjust their strategies based on changes in local economic indicators such as employment rates and income levels.
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.