Location: Leflore County, MS | Metro: Holmes County, MS HUD Metro FMR Area
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 | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $80,679 | 1.67% | A+ |
U.S. Census Bureau data (2024)
The analysis of ZIP Code 38954 in Sidon, Mississippi, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR is set at $1060, while the Census ACS data indicates that the market rent is $932. This gap stands at $128, which translates to approximately 13.75% above the market rent.
This discrepancy makes ZIP Code 38954 a prime location for a yield play through Section 8 tenants. Landlords can expect to receive a higher monthly payment from the government, ensuring a steady and reliable income stream. Given the 26.9% of residents who are renters, and the median income of $38,293, it's evident that many locals may struggle to afford the open-market rent. Thus, the FMR provides a financial cushion that benefits both tenants and landlords.
The median home value in ZIP Code 38954 is $88,748, reflecting a community where affordability is a key consideration for many. The FMR being higher than the market rent means that voucher tenants can afford to live in properties that might otherwise be too expensive for them. This scenario also allows landlords to potentially charge slightly above the market rent without excluding low-income families, thereby increasing their rental yields.
In conclusion, the higher FMR compared to the market rent in ZIP Code 38954 positions it as an attractive market for landlords participating in the Section 8 program. It ensures a consistent cash flow and helps to address the affordability concerns of local 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.