Location: Leflore County, MS | Metro: Leflore County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 38946 reveals several potential challenges for landlords and small-portfolio investors considering Section 8 participation. Tenant turnover is a significant concern, with the market rent at $1,250 being notably higher than the Fair Market Rent (FMR) of $920 for fiscal year 2026. This disparity can lead to higher turnover rates as tenants may struggle to afford the difference between the FMR and the market rent, impacting the stability and profitability of your rental properties.
Vacancy exposure is another issue to consider. The average days on market (DOM) for properties in this area is currently unavailable, which makes it difficult to predict how long a property might remain vacant. Vacancies can be costly, leading to lost rental income and increased maintenance needs. Landlords must be prepared for periods of vacancy and the associated financial strain.
Deferred maintenance is also a risk factor. The typical home value and median income in ZIP 38946 are not available, making it challenging to assess the financial health of local homeowners and their ability to maintain their properties. This lack of data can indicate that some homes may not be kept up to the standards required by Section 8 programs, potentially leading to higher maintenance costs and compliance issues for landlords.
Despite these risks, the high renter share of 43.1% in ZIP 38946 suggests strong demand for rental housing. A high concentration of renters typically correlates with higher demand for Section 8 vouchers, which can provide a steady stream of qualified tenants. This demand can mitigate some of the risks associated with tenant turnover and vacancy exposure, ensuring a consistent occupancy rate.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 38946 is moderate. While there are significant risks related to tenant turnover and deferred maintenance, the high renter share provides a solid foundation for attracting voucher holders, balancing out some of the potential downsides.
Data Sources: FMR data from HUD (2027). 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.