Location: Jackson, MS | Metro: Jackson, MS HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 39058 reveals an interesting picture when comparing the federally determined Fair Market Rent (FMR) to the actual market conditions. For a two-bedroom apartment, the annualized FMR set by the government for fiscal year 2024 is $13,560 ($1130 per month).
However, the market rent data for ZIP 39058 is currently unavailable, which complicates a direct comparison. Assuming that the market rent aligns closely with the FMR, we can infer a gross yield based on the median home value, which is also not provided. In such cases, the analysis becomes speculative without accurate market rent data.
Given the N/A% renter density and the N/A-day days on market (DOM), it's challenging to determine the exact market dynamics. Typically, a higher renter density and lower DOM suggest a robust rental market where properties are rented quickly, indicating strong demand and potentially higher market rents. Conversely, lower renter density and higher DOM might imply a softer rental market.
In a scenario where the market rent equals the FMR, the implied gross yield would be calculated based on the median home value. Unfortunately, without the specific median home value for ZIP 39058, we cannot provide a precise figure. However, if the median home value were known, the gross yield could be computed by dividing the annualized FMR by the median home value.
The more realistic scenario would depend on the actual market rent. If the market rent significantly exceeds the FMR, the gross yield would be higher, reflecting better potential returns for landlords and small-portfolio investors. Conversely, if the market rent is below or close to the FMR, the gross yield would be lower, suggesting less favorable investment opportunities.
To conclude, while the FMR provides a baseline for rental income, the true potential of Section 8 investments in ZIP 39058 hinges on understanding the local rental market dynamics. Accurate market rent data is crucial for making informed decisions about the gross yield and overall profitability of these investments.
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.