Location: Pontotoc County, MS | Metro: Lafayette 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 | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $250,035 | 0.56% | F |
U.S. Census Bureau data (2024)
In ZIP code 38863, the Section 8 program operates under specific economic guidelines that affect both landlords and tenants. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,170. This figure represents the maximum amount that the Housing Choice Voucher Program will pay to landlords for renting out a unit in this area.
Contrastingly, the local market rent for a two-bedroom apartment, as reported by the Census ACS (American Community Survey), is $864. This indicates that the average rental price in the area is lower than the SAFMR, which could be beneficial for landlords participating in the program.
The voucher payment process involves several components. First, the tenant is required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. In addition to the base rent, there are utility allowances which vary based on the size of the unit and other factors. For a two-bedroom apartment, the total reimbursement from the voucher can be calculated as follows:
To illustrate, if a tenant has an adjusted monthly income of $1,000, they would be expected to contribute $300 towards the rent. The government would then cover the remaining $870 to reach the SAFMR of $1,170. If the actual rent charged by the landlord is less than $1,170, such as the market average of $864, the landlord still receives the full market rent plus any applicable utility allowance.
The typical reimbursement gap or surplus in ZIP 38863 for a two-bedroom apartment can be seen when comparing the SAFMR to the local market rent. With the local market rent at $864 and the SAFMR at $1,170, landlords who participate in the Section 8 program receive a surplus of $306 per month over the average market rent for a two-bedroom unit. This surplus can help offset any additional costs associated with maintaining properties in the program and provides a predictable income stream for landlords.
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.