Section 8 Fair Market Rent (FMR) for ZIP 39047 - 2027

Investment Score for ZIP 39047

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,530
1 Bedroom	$1,540
2 Bedrooms	$1,800
3 Bedrooms	$2,140
4 Bedrooms	$2,370
5 Bedrooms	$2,749
6 Bedrooms	$3,079
7 Bedrooms	$3,325
8 Bedrooms	$3,491

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,800	$194,474	0.93%	C
3BR	$2,140	$267,093	0.8%	C
4BR	$2,370	$397,379	0.6%	F
5BR	$2,749	$568,756	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 39047 (Brandon, MS) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 39047, as per the 2026 data, is set at $1830 for a two-bedroom unit. This represents 21.9% of the median household income in Brandon, which is $100,347. The FMR is designed to ensure that renters can find housing that is affordable based on their income level. However, the actual rents in the area must be compared to these figures to understand how well they align with the voucher program. In practice, the FMR often serves as a cap for what Section 8 voucher holders can pay. If the actual rent exceeds the FMR, the tenant would have to pay the difference out-of-pocket. Given that the median household income is relatively high at $100,347, the FMR of $1830 for a two-bedroom unit is quite low relative to the income level. This suggests that voucher holders might face significant challenges in finding units that fall within the FMR range. #### Affordability & Renter Profile The population of Brandon is 40,808, and 14.7% of residents are renters. This indicates that the rental market is relatively small compared to the overall population, suggesting that it could be a competitive environment for those seeking rentals. The occupancy rate of 94.8% further supports the idea that the market is tight, with very little vacancy available. Given the high median household income, the typical renter profile likely includes individuals or families who are either lower-income earners or receiving some form of assistance like Section 8 vouchers. These renters might struggle to find affordable housing options, especially since the FMR is only 21.9% of the median income. This means that landlords who want to participate in the Section 8 program must keep their rents below the FMR to attract these tenants. #### Investor Angle From an investor perspective, the key metric is whether the rental income generated by properties at the FMR level can cover the costs and provide a positive cash flow. The Zillow median price for a two-bedroom home in ZIP code 39047 is $191,779. Considering the price-to-FMR ratio of 8.7x, we can infer that the cost of acquiring a property is significantly higher than the potential rental income. To break down the investment angle, let’s assume an average mortgage payment of around 1% of the property value per month, which would be approximately $1,917.79 for a $191,779 property. Adding other expenses such as maintenance, insurance, and property taxes, the total monthly expenses could easily exceed the FMR of $1830. This makes it challenging for investors to achieve positive cash flow solely through the Section 8 program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for a two-bedroom unit is $1830, investors should consider focusing on smaller units like one-bedroom apartments or studios. For instance, the FMR for a one-bedroom unit is $1560, which might offer better opportunities for positive cash flow if the acquisition cost is lower. 2. **Seek Government Subsidies**: Given the high cost of property acquisition relative to the FMR, investors might benefit from exploring government subsidies or programs that can help offset the initial investment costs. This could include tax incentives, grants, or other financial aid specifically targeted towards affordable housing projects. 3. **Consider Non-Section 8 Tenants**: Due to the tight market and high median income, there might be opportunities to cater to non-Section 8 tenants who can afford higher rents. Investors could consider developing or renovating properties to appeal to this demographic, potentially achieving higher rental yields. #### Bottom Line For Section 8-focused investors, the ZIP code 39047 presents a challenging environment due to the high cost of property acquisition and the relatively low FMR compared to the median household income. The recommendation would be to **Skip** this ZIP code unless you can secure additional subsidies or have a strategy to cater to non-Section 8 tenants who can pay higher rents. The current dynamics suggest that the market is not favorable for achieving positive cash flow purely through the Section 8 program.

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.