Location: Yalobusha 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 | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,150 | $155,975 | 0.74% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent for the metro area in fiscal year 2026 is set at $870. This figure represents the maximum amount that a Section 8 voucher holder can pay for rent in this ZIP code. In contrast, the median home value in ZIP 38953 is $157,658. Given the relatively low median home value compared to other areas, it suggests that rental properties in this ZIP code can be acquired at a reasonable cost, which can then be rented out to Section 8 voucher holders at the FMR rate.
This strategy allows landlords and small-portfolio investors to secure steady cash flow without the need for significant capital investment. The consistent rental income provided by Section 8 vouchers helps mitigate the risk of vacancy and ensures a reliable source of revenue. Moreover, the low median home value indicates that the cost of acquiring properties is lower, which can result in higher cash-on-cash returns for investors.
While there is limited information on the appreciation potential and diversification benefits of investing in ZIP 38953, the focus should be on the immediate cash flow generated from Section 8 rentals. With a median income of $36,454, the area has a substantial renter share of 8.7%, indicating a robust demand for affordable housing. This demand supports the viability of a cash-flow anchor strategy, where the emphasis is on generating regular rental income rather than on rapid property appreciation or broad portfolio diversification.
In summary, ZIP 38953 is best suited as a cash-flow anchor in a Section 8 portfolio strategy due to its low median home value and the guaranteed rental income from Section 8 vouchers. Landlords and small-portfolio investors can leverage this opportunity to build a stable and predictable revenue stream with minimal upfront investment.
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.