Location: Pontotoc County, MS | Metro: Chickasaw County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
ZIP 38860, located in Okolona, MS, within the Pontotoc County, MS metro area, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The key determinant here is the significant spread between the Fair Market Rent (FMR) set at $990 for the metro area in fiscal year 2026 and the actual market rent of $605. This disparity allows landlords to secure higher rents through the Section 8 program compared to what they might receive on the open market.
The median home value in ZIP 38860 stands at $125,026, which is relatively low. This makes the area attractive for first-time homebuyers and investors looking to enter the housing market at a lower cost point. However, the primary focus for Section 8 landlords should be on rental properties, where the financial benefits are most pronounced.
Given that the FMR exceeds the market rent by $385, landlords can expect stable and predictable cash flows from tenants participating in the Section 8 Housing Choice Voucher program. This spread ensures that the rental income will cover the mortgage, maintenance, and other operational costs associated with property ownership, providing a solid foundation for the portfolio.
While ZIP 38860 has a 35.8% renter share and a median income of $41,293, these factors do not make it a prime candidate for appreciation plays or diversification strategies. The lack of data on price-cut shares and days on market (DOM) indicates that there isn't enough evidence to suggest rapid property value increases or that the area would benefit from a mix of investment types.
In conclusion, ZIP 38860 is best suited as a cash-flow anchor in a Section 8 portfolio due to the substantial difference between the FMR and market rent, ensuring reliable returns for landlords and small-portfolio investors.
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.