Location: Webster 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 | $640 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $84,894 | 1.07% | B |
| 3BR | $1,190 | $119,758 | 0.99% | C |
| 4BR | $1,190 | $201,251 | 0.59% | F |
U.S. Census Bureau data (2024)
27.3% of residents in ZIP code 38916, MS, are renters, indicating a significant portion of the population relies on rental housing. This demographic characteristic aligns well with the $621 market rent observed in the area, as reported by the Census ACS, which suggests that rental properties are priced at a level that is accessible to a substantial part of the local populace. The $113,736 median home value highlights the overall affordability of the real estate market in this region, making it an attractive option for both tenants and landlords alike.
$890 is the Fair Market Rent (FMR) set for the metro area in fiscal year 2026, providing a benchmark for what is considered a reasonable rent for a unit. This figure is notably higher than the current market rent of $621, suggesting potential for rental property owners to increase their income while still remaining competitive within the local market. However, the $48,094 median income must be taken into account when setting rents, ensuring that they remain affordable for the majority of the population.
The lack of data regarding the average days on market (DOM) and the percentage of homes with price cuts indicates stability in the real estate market. Without significant fluctuations in listing times or price reductions, there is less pressure on landlords to offer discounts or to constantly update their properties to maintain occupancy rates. This stability can contribute to a more predictable cash flow for small-portfolio investors.
In conclusion, the data from ZIP 38916, MS, supports the viability of Section 8 investments. With a strong renter base and a median income that is in line with the current market rent, landlords can expect steady demand for affordable housing units. Moreover, the gap between the market rent and the FMR provides a margin for growth without alienating potential tenants. The verdict on Section 8 in this area is positive, offering a reliable investment opportunity for those looking to enter the affordable housing market.
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.