Location: Tallahatchie County, MS | Metro: Coahoma 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 | $920 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $89,442 | 1.53% | A+ |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 38963 presents a unique opportunity for both landlords and small-portfolio investors. With a median home value set at $90,769, the area is notably affordable compared to broader national trends, making it attractive for those looking to enter the market without the need for significant capital investment.
The absence of data on the percentage of listings that have been reduced and the median days on market (DOM) suggests a stable market condition. This stability implies that there is little pressure from sellers to reduce prices, which can be interpreted as a strong indicator of pricing power for the upcoming 12 to 24 months. Landlords and investors can maintain their property values or potentially increase them without fear of an oversaturated market pushing down prices.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $1,050. This figure stands above the current market rate of $908, according to Census ACS data. The gap between the FMR and the actual market rent indicates a potential for rental price increases in the future. Investors should prepare to adjust their rents incrementally as the market moves closer to the FMR, ensuring they remain competitive while maximizing returns.
For long-term investors, the setup in ZIP 38963 signals a moderate appreciation thesis. Given the low median home value and the steady demand reflected in the rental market dynamics, properties are likely to see gradual growth in value. However, the appreciation is expected to be modest rather than exponential, aligning with the overall stability of the market. This makes ZIP 38963 suitable for investors seeking steady, reliable returns over time rather than rapid appreciation.
In summary, the combination of a low median home value, a stable market condition indicated by the lack of price reductions, and favorable rental market dynamics positions ZIP 38963 as a promising area for real estate investment. The setup supports maintaining or slightly increasing property values and rents, providing a solid foundation for long-term portfolio growth.
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.