Location: Yazoo County, MS | Metro: Yazoo County, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 39040 reveals a moderate balance between yield and stability, making it neither a purely high-yield/low-stability flip-style market nor a strictly steady-cashflow zone. Here's the breakdown:
Yield: The Fair Market Rent (FMR) for ZIP 39040 in fiscal year 2024 is set at $1070, compared to the market rent of $1,047. This suggests that the rental market is slightly below the FMR threshold, indicating a modest opportunity for landlords who can manage properties efficiently. Additionally, the median home value stands at $159,378, which is relatively low, allowing for potential higher yields when considering the cost of acquisition.
Stability: With 34.6% of residents being renters, there is a significant portion of the population relying on rental housing, which can provide consistent demand. However, the lack of data on the number of days on market (DOM) and the median income of $61,250 suggest some volatility in the local economy and housing market. A lower median income could affect tenants' ability to pay rent consistently, thus impacting the stability of cash flow.
To classify this market, we must consider both the yield and stability factors. The yield is moderately positive due to the rental rates being close to the FMR and the relatively low home values. However, the stability is somewhat compromised by the unknown DOM and the lower median income. Therefore, ZIP 39040 falls into a category that is best described as a moderately stable-yield market. It offers opportunities for landlords and small-portfolio investors but requires careful management to ensure consistent cash flow and mitigate risks associated with tenant turnover and economic fluctuations.
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.