Location: Carroll 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 | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $161,595 | 0.77% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $870 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a home priced at $151,844. To address this, let's consider the typical mortgage payments. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly payment on a $151,844 home would be approximately $720. This figure is below the projected FMR, indicating that rental income could indeed cover the mortgage.
The same investor might also doubt the strength of the rental market given that only 5.9% of households in ZIP 38923 are renters. However, it's important to note that the majority of homes in this ZIP code are either owner-occupied or under mortgage, suggesting a stable housing market. While the percentage of renters is low, the actual number of potential tenants can still support a modest rental portfolio. Moreover, the presence of owner-occupied homes often indicates a desirable living environment, which can attract more renters over time.
Lastly, there's concern about whether housing vouchers will keep pace with the local market rents, especially since the data does not provide specific figures for voucher amounts. In ZIP 38923, the lack of recent data on voucher trends makes it challenging to predict their future alignment with market rents. Typically, voucher programs adjust annually based on HUD guidelines, but without specific numbers, it's difficult to assert how closely they will match the $870 FMR. Landlords should monitor local HUD announcements and budget conservatively to prepare for any discrepancies between voucher amounts and market rents.
In summary, while some uncertainties exist, particularly regarding the specifics of housing vouchers, the data suggests that the rental market in ZIP 38923 can support a small investment portfolio with reasonable returns.
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.