Location: Sharkey County, MS | Metro: Sharkey County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
The analysis of the Section 8 program in ZIP code 39061 centers around the disparity between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2026, the FMR is set at $840. However, the market rent data for this area is currently unavailable, which poses a challenge for precise comparison. Despite this limitation, we can still draw some conclusions based on the available FMR figure.
In scenarios where the FMR exceeds the market rent, properties become attractive for landlords seeking stable yields. Voucher tenants provide guaranteed rental income, often at or near the FMR rate, which can be higher than what the open market offers. This makes Section 8 properties a solid investment choice for those aiming to maximize returns while minimizing risk.
Conversely, when the FMR is lower than the market rent, participating in the Section 8 program means accepting a lower rental rate compared to what could be earned in the open market. The difference represents the cost of housing voucher tenants, as landlords must forgo potential higher rents to participate in the program. This gap can significantly impact the profitability of a property, especially if the landlord's goal is to achieve high cash-on-cash returns.
To provide a more comprehensive analysis, additional context regarding the percentage of renters, median home values, and median incomes in ZIP 39061 would typically be necessary. Unfortunately, these figures are also not available at this time. Nonetheless, the decision to accept Section 8 tenants should be made with a clear understanding of the financial implications, weighing the benefits of consistent rental income against the potential loss of higher market rents.
Data Sources: FMR data from HUD (2027).
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.