Location: Jackson, 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 | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $171,739 | 0.79% | D |
| 3BR | $1,610 | $222,549 | 0.72% | D |
| 4BR | $1,770 | $345,491 | 0.51% | F |
| 5BR | $2,053 | $453,195 | 0.45% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 39056, which encompasses Clinton, Mississippi, within Hinds County, are structured around the federal government subsidizing housing costs for eligible low-income tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1280 for fiscal year 2024. This figure is specific to this ZIP code, meaning it is the maximum amount that a Section 8 voucher will cover for rental housing in this area.
In contrast, the local market rent for a similar two-bedroom unit is $1,627, according to the ZORI (Zillow Observed Rental Index). This difference highlights the financial dynamics landlords face when considering participation in the Section 8 program.
A landlord's actual reimbursement from a Section 8 voucher includes several components. First, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,000 per month, the tenant would pay $300 towards rent. The remainder of the rent, up to the SAFMR of $1280, is covered by the government. In this case, the government would pay $980 to make up the difference between the tenant's contribution and the SAFMR.
Beyond base rent, Section 8 also covers utility allowances. These can vary but are typically around $300-$400 per month for a two-bedroom apartment. Therefore, if we consider a utility allowance of $350, the total reimbursement a landlord might receive from a Section 8 voucher for a two-bedroom unit would be $1330 ($980 base rent subsidy + $350 utility allowance).
This brings us to the reimbursement gap or surplus. Given the SAFMR of $1280 and the local market rent of $1,627, there is a shortfall of $297 per month for landlords participating in the Section 8 program in ZIP 39056. This means landlords must either accept a lower net income compared to the market rate or find ways to reduce operating costs to maintain profitability.
To summarize, landlords in ZIP 39056 should expect a total reimbursement of approximately $1330 for a two-bedroom unit, which is below the local market rent of $1,627. Thus, the typical reimbursement gap for such units is $297 per month, representing the difference landlords must absorb if they choose to participate in 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.