Location: Yalobusha County, MS | Metro: Panola 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 | $900 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $130,324 | 0.82% | C |
| 3BR | $1,380 | $174,701 | 0.79% | D |
U.S. Census Bureau data (2024)
The ZIP code 38948, located in Oakland, Mississippi, represents a significant opportunity for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 1,818, this area has a substantial 24.6% of residents who are renters, indicating a solid base of potential Section 8 applicants. The median household income in this ZIP is $29,400, which aligns closely with the financial eligibility criteria for Section 8 housing assistance.
The typical market rent of $904 per month in ZIP 38948 consumes approximately 30.75% of the median household income, a figure that reflects the economic realities faced by many residents. This percentage is within the range often considered reasonable for housing costs, making it feasible for qualified low-income individuals to afford rent through the voucher program. For comparison, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, suggesting that rents in ZIP 38948 are slightly below average for the region, which could be advantageous for attracting and retaining tenants.
Landlords in ZIP 38948 should anticipate a tenant pool that is heavily reliant on government assistance programs such as Section 8. These tenants will likely have a household income that is at or below 50% of the area median income, as required by the program. They will be seeking affordable housing options that meet their needs while staying within the limits of their voucher. It's important for landlords to understand that while the rental income is guaranteed by the government up to the voucher limit, they must ensure their properties meet HUD standards for health and safety.
In summary, ZIP 38948 presents a niche market for landlords willing to work with Section 8 vouchers. The area is renter-heavy, with a significant portion of the population qualifying for assistance due to income levels. Landlords can expect tenants who are financially dependent on the voucher system but who will provide stable, government-backed rental payments. The key to success in this market is maintaining high-quality, code-compliant properties that appeal to those seeking safe and affordable housing.
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.