Location: Webster 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 | $890 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $106,956 | 1.01% | B |
| 3BR | $1,280 | $151,080 | 0.85% | C |
| 4BR | $1,410 | $202,555 | 0.7% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38925, which includes Winona, MS, and the broader Webster County, MS metro area, reveals several key points for potential landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920, while the current market rent, according to Census ACS data, stands at $491. This significant gap suggests that landlords aiming to charge rents close to the FMR will face challenges in finding tenants willing to pay such high rates. The disparity indicates a misalignment between government-set benchmarks and actual market conditions.
Regarding the affordability of acquisitions, the median home value in ZIP 38925 is $143,753. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts makes it difficult to assess the ease of acquiring properties. Investors should conduct further research to understand the local real estate market dynamics fully.
The third question concerns tenant demand. With a total population of 1,901, the renter share is 17.9%. This relatively low share implies limited demand for rental properties. Landlords must be cautious about oversupplying the market, as the number of potential tenants may not support a large inventory of rental units.
Verdict: The rent math does not align favorably with market realities in ZIP 38925. While the median home value presents an affordable entry point for property acquisitions, the limited data on DOM and price-cut percentages suggest caution. Furthermore, the low renter share means that tenant demand is constrained. For landlords and small-portfolio investors, this ZIP code poses challenges due to the mismatch between FMR and market rent, as well as the restricted pool of potential renters.
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.