Location: Lee County, MS | Metro: Lee 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 | $850 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $255,427 | 0.47% | F |
| 4BR | $1,260 | $355,410 | 0.35% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 38866 reveals several potential challenges that landlords and small-portfolio investors must consider before entering into Section 8 housing programs. Firstly, tenant turnover can be a significant issue due to the disparity between the market rent of $886 and the Federal Market Rent (FMR) of $1,040 for fiscal year 2026 in the metropolitan area. This difference may lead to tenants seeking higher-value homes, which can increase the frequency of vacancies.
Vacancy exposure is another critical factor, although the specific number of days on the market (DOM) is not available for ZIP 38866. However, it's important to note that extended periods of vacancy can significantly impact cash flow, especially when the average home value is around $236,167 and the median income is only $78,791. These figures suggest that many residents may struggle to afford even the market rent, let alone the FMR, increasing the likelihood of prolonged vacancy periods.
Deferred maintenance is also a risk, particularly in areas where the median income does not support substantial home improvements. Landlords must be prepared to invest in property upkeep to meet Section 8 standards and maintain tenant satisfaction. The typical home value in ZIP 38866 is $236,167, which indicates a need for careful budgeting to cover any necessary repairs without overextending financial resources.
Despite these risks, the high renter share of 14.9% provides a strong foundation for consistent voucher demand. High renter density often translates to a steady pool of tenants who qualify for Section 8 assistance, thereby mitigating some of the financial uncertainties associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 38866. While there are significant challenges, the high renter share offers a counterbalance that can stabilize the investment over time.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.