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 | $750 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $135,063 | 0.87% | C |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 38929 for Section 8 properties must evaluate several key factors to determine if such an investment is worthwhile. The first question to address is whether the Fair Market Rent (FMR) of $990 can cover the debt service on a property valued at $115,443.
If the answer is yes, then the next step is to assess the relationship between the market rent of $814 and the FMR. If the market rent is below the FMR, it indicates that there's potential to charge higher rents through Section 8 vouchers, making the investment more attractive. If market rent is equal to or above the FMR, landlords might find less incentive to participate in the program, as they could likely achieve similar or better rental income without the administrative burdens associated with Section 8.
The third consideration is the demand for rental properties. In ZIP 38929, 17.6% of residents are renters, and the days on market (DOM) is listed as N/A, which suggests either a lack of available data or that rental properties are typically occupied promptly. A high percentage of renters combined with low DOM would indicate strong demand. However, since the DOM data is unavailable, we must rely solely on the percentage of renters to gauge demand.
Decision Tree:
If the $990 FMR does not cover the debt service on a $115,443 property, the answer is No. The investment will not be financially viable under Section 8 terms.
If the $990 FMR covers the debt service and the market rent is below $990, the answer is Yes. Landlords can benefit from higher rents through Section 8 vouchers, offsetting any administrative costs.
If the $990 FMR covers the debt service but the market rent is above or equal to $990, the answer is It Depends. While the FMR is sufficient to cover debt service, landlords might prefer to rent out properties at market rates without the complexities of Section 8.
If the demand is strong, with 17.6% of residents being renters and assuming a low DOM based on typical occupancy patterns, the answer leans towards Yes. High demand supports the financial viability of a Section 8 investment.
In cases where the demand is unclear due to the unavailability of DOM data, the answer remains It Depends. Further investigation into local rental trends and vacancy rates is necessary to make an informed decision.
To summarize, the decision to invest in ZIP 38929 for Section 8 properties hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the strength of rental demand. With the given data, landlords can make a well-informed choice about their investment strategy.
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.