Location: Holmes County, MS | Metro: Holmes County, 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 | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $73,443 | 1.7% | A+ |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 39063 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP is set at $1010 per month for FY 2024. This figure represents the maximum amount that the housing authority will pay for a two-bedroom unit under the Section 8 program. However, it's important to note that the local market rent for a similar unit is significantly lower, running at $486 according to the Census ACS.
When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically 30% of their income. In addition to the base rent, there are utility allowances that can vary but generally do not exceed the difference between the market rent and the FMR. For ZIP 39063, if we consider the local market rent of $486, the tenant would be expected to cover this amount plus any additional utilities, up to the total reimbursement limit.
To illustrate, let's assume a tenant's portion of the rent is $150, which is below the market rent. The housing authority would then cover the remaining amount up to the SAFMR of $1010. In this case, the authority would reimburse the landlord $860 ($1010 - $150) before any utility allowances are considered. If the utility allowance is, say, $100, the total reimbursement to the landlord would be $960 ($860 + $100).
Given these numbers, landlords in ZIP 39063 might see a surplus when renting to tenants with vouchers, as the combined reimbursement and tenant contribution exceed the local market rent. Specifically, the reimbursement gap or surplus for a two-bedroom unit would typically be around $474 ($960 - $486), assuming the utility allowance is $100 and the tenant pays $150. This surplus can provide a financial cushion for landlords and help offset costs associated with maintaining and managing rental properties.
In summary, while the SAFMR sets a higher ceiling for reimbursement, the actual economic impact for landlords in ZIP 39063 is positive due to the disparity between the SAFMR and the local market rent. Landlords should expect to receive a reimbursement that covers the local market rent and provides an additional surplus, making Section 8 a viable option for rental units in this ZIP code.
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.