Location: Chickasaw County, MS | Metro: Calhoun 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 | $630 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $83,378 | 1.09% | B |
| 3BR | $1,190 | $117,454 | 1.01% | B |
| 4BR | $1,280 | $168,984 | 0.76% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 38878, Vardaman, Mississippi, is set at $840 for the fiscal year 2026. This amount represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It's important to note that this is not the actual rent you would charge your tenants; rather, it's the maximum amount that the government will pay on behalf of eligible low-income families.
To put this into perspective, the average rent for the area, based on Census ACS data, is $445. The FMR is significantly higher than this local average, which means that landlords can potentially receive a higher subsidy payment compared to typical market rates. This can be beneficial for covering maintenance costs, property taxes, and other expenses associated with owning a rental property.
In ZIP 38878, approximately 23.4% of residents are renters. This indicates a steady demand for rental housing in the area, making it a viable market for new Section 8 properties. However, the demand does not necessarily mean all rental units will be occupied by Section 8 tenants. Landlords should consider the mix of tenants they want to attract.
The median home value in the area is around $119,492, which is an indicator of the potential acquisition cost for a property. If you're looking to buy a rental property in this ZIP code, this figure can help you estimate the investment required. Keep in mind that property values can vary widely depending on the condition, size, and location of the property.
Before deciding to participate in the Section 8 program with your first rental property, it's crucial to verify that your property meets the Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. A thorough inspection and any necessary repairs to meet these criteria are essential steps to avoid future complications.
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.