Location: Union County, MS | Metro: Lafayette County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The ZIP code 38871 is situated in a tranquil suburban setting within Tipton County, Tennessee, characterized by its spacious lots and quiet streets. This neighborhood is home to 2,337 residents, where 18.2% are renters, indicating a primarily owner-occupied community. The median household income here stands at $63,906, reflecting a modest but stable economic base. With a median home value of $227,973, it's evident that this area offers affordable housing options for families and individuals alike.
Transitioning into the realm of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,170. However, the actual market rent in ZIP 38871 is notably lower, averaging $649 according to Census ACS data. This significant gap between the FMR and the market rent presents an opportunity for both hands-off voucher operators and hands-on value-add buyers.
For hands-off voucher operators, the lower market rent means that properties can be rented out at a rate below the FMR, allowing them to benefit from the difference while providing affordable housing to tenants who qualify for Section 8 assistance. This strategy can ensure steady cash flow without the need for active property management.
On the other hand, hands-on value-add buyers have the potential to increase rents closer to the FMR by improving property conditions and amenities, thus maximizing their investment returns. Given the modest median income and median home value, there is room for enhancing property values through strategic improvements that cater to the local demand.
In conclusion, ZIP 38871 offers a balanced environment for both types of investors. Its tranquil suburban character and stable economic indicators make it suitable for hands-off operations, while the disparity between FMR and market rent provides a clear path for value-add 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.