Location: Tallahatchie County, MS | Metro: Carroll 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 | $740 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $57,389 | 1.67% | A+ |
| 3BR | $1,150 | $125,517 | 0.92% | C |
| 4BR | $1,280 | $267,334 | 0.48% | F |
U.S. Census Bureau data (2024)
The median household income in ZIP 38901, which encompasses Grenada, Mississippi, stands at $48,848. At the current market rate of $811 per month for rent, as reported by the Census Bureau's American Community Survey (ACS), a household in this area would spend approximately 20% of their annual income on rent alone. This figure represents a significant portion of disposable income, leaving little room for other expenses.
Comparatively, the Fair Market Rent (FMR) set for the metro area for fiscal year 2026 is $920. This is the amount that housing vouchers will cover, meaning that tenants utilizing vouchers would have a slightly higher budget available for rent. However, the difference between the market rate and the FMR highlights an affordability gap, where market rates are lower but still represent a substantial cost for local residents.
With 35.8% of the population being renters and a total population of 17,832, the competition among landlords in ZIP 38901 is moderate. There are approximately 6,367 rental units in the area, indicating a need for affordable housing options. The affordability gap suggests that many renters may struggle to find suitable accommodation at the market rate without assistance.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While cash-paying tenants might offer a simpler transaction, the guaranteed payment through housing vouchers can provide a more stable income stream. Accepting vouchers means aligning with the government-set FMR of $920, which is above the current market rate but ensures consistent rent payments from eligible tenants. For those landlords willing to meet the requirements of the voucher program, it can be a strategic move to tap into a reliable source of income while supporting the community's need for affordable housing.
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.