Location: Lee County, MS | Metro: Lee County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
ZIP 38862, located in Lee County, MS, is an ideal candidate for a diversifier within a Section 8 portfolio strategy. The median home value in this area is $160,569, which is relatively low compared to the national average. With a median income of $52,750, there is a significant 33.8% renter share, indicating that a substantial portion of the local population relies on rental housing.
The cash-flow anchor consideration is less compelling due to the limited spread between the Fair Market Rent (FMR) and market rent. For fiscal year 2026, the FMR for the metro area is set at $990, while the market rent stands at $827. This leaves a modest spread of $163 per unit, which may not provide the robust cash flow typically desired for such a role in a portfolio. However, the low median home value can still offer some stability in terms of property costs.
ZIP 38862 does not present itself as a strong appreciation play. There is no significant percentage change in home values or days on market (DOM) to suggest rapid growth or high demand for properties. The recent sold properties data indicates a median listing price of $203,000, but there is no evidence of a price-cut share or days on market that would support an appreciation strategy.
In conclusion, ZIP 38862 serves best as a diversifier in a Section 8 portfolio. Its low median home value and significant renter share make it a suitable location for spreading risk across different types of investments. Landlords and small-portfolio investors should consider the 33.8% renter share and median income of $52,750 when evaluating the potential of this ZIP code for their investment strategies.
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.