Location: Tallahatchie County, MS | Metro: Grenada 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 | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,120 | $142,240 | 0.79% | D |
U.S. Census Bureau data (2024)
ZIP code 38920, located within Tallahatchie County, MS, presents a unique profile when compared to typical ZIP codes in the county. The Fair Market Rent (FMR) for the area stands at $870 for fiscal year 2026, which is a key figure for understanding the rental market dynamics. Notably, the market rent for 38920 is not available, suggesting that the FMR might be a significant indicator for the local rental environment.
The median home value in ZIP 38920 is listed at $129,046. This figure is lower than what might be expected in many other areas within the Tallahatchie County metro, indicating that it could be considered a value pocket for both landlords and small-portfolio investors. Lower home values can translate into lower acquisition costs for investment properties, making it potentially attractive for those looking to enter the market without a large capital outlay.
A critical aspect of ZIP 38920's real estate landscape is the substantial renter share, which accounts for 38.0% of the population. A high percentage of renters often signifies a strong demand for rental housing, which can benefit landlords. Given that the FMR is set at $870, landlords who can offer well-maintained properties at or slightly above this rate may find themselves in a favorable position.
The combination of a high renter share and below-average home values in ZIP 38920 suggests that it could be an ideal location for Section 8 properties. This program aims to provide affordable housing options to low-income families, and the alignment between the FMR and the local rental market could make it easier for landlords to participate in the Section 8 program.
In conclusion, ZIP 38920 appears to be a value pocket within the Tallahatchie County, MS metro. Its lower home values coupled with a high renter share make it an interesting area for real estate investment, particularly for those interested in the Section 8 program. While the exact market rent is unknown, the FMR provides a benchmark for rental pricing that could be advantageous for landlords.
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.