Location: Neshoba County, MS | Metro: Jackson, 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 | $960 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $163,163 | 0.7% | D |
U.S. Census Bureau data (2024)
The ZIP code 39051 is situated in a predominantly residential area characterized by a modest population of 14,986 residents. The rental segment of this community is relatively small, with only 20.7% of the population renting their homes. This indicates a preference for homeownership, as evidenced by the median home value standing at $163,527. However, the median household income in the area is $48,547, which suggests that a significant portion of the population may struggle to afford the cost of homeownership, making rental properties a viable option for many.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 39051 for fiscal year 2024 is set at $920. This figure represents the maximum amount that a Section 8 voucher holder can pay for rent in the area, based on HUD guidelines. In contrast, the average market rent for the area, according to Census ACS data, is $717. This difference highlights an opportunity for landlords who can offer affordable housing units at or below the FMR, thereby attracting voucher holders who represent a stable and reliable tenant base.
The discrepancy between the FMR and the market rent also opens up strategic possibilities for both hands-off and hands-on investors. For those seeking a low-maintenance investment strategy, ZIP 39051 presents a straightforward environment where the demand for affordable housing meets the supply of rental units. Voucher holders provide a consistent income stream, reducing the risk of vacancy and delinquency.
On the other hand, for hands-on investors looking to add value, there is potential to increase property values through renovations and improvements, given the lower median home value compared to typical market conditions. These investments could then be rented out at rates closer to the FMR, capturing the higher end of the affordable housing spectrum without overpricing the units. This approach requires more active management but offers greater upside potential in terms of rental income and property appreciation.
In conclusion, ZIP 39051 caters well to both hands-off operators and hands-on value-add buyers. The former will find a stable tenant pool in voucher holders, while the latter can leverage the economic dynamics to enhance returns through strategic property improvements and rental pricing.
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.