Location: Smith County, MS | Metro: Scott 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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $165,593 | 0.74% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 39074 stands at $46,030, which contrasts sharply with the market rate for rent at $848 per month according to Census ACS data. This suggests that households in this area face significant financial pressure to cover their housing costs. When compared to the Fair Market Rent (FMR) set at $960 for metro areas in fiscal year 2026, it becomes evident that the gap between what residents earn and what they must pay for rent is substantial.
In ZIP 39074, where 31.5% of the 14,283 population are renters, the affordability gap poses a direct challenge to landlords. The discrepancy between the median income and both the market rate ($848) and the voucher payment standard ($960) indicates that many tenants may struggle to meet the monthly rent requirements without assistance. This scenario likely intensifies competition among landlords, as those who offer lower rents or accept rental vouchers may attract a larger pool of potential tenants.
Landlords in this ZIP code should consider the reality that many renters cannot afford the full FMR without financial aid. Accepting rental vouchers can be a strategic move to secure tenants in a competitive market. However, it is also important to note that the voucher payment standard is higher than the current market rate, suggesting that landlords might still find it profitable to accept vouchers while maintaining occupancy rates.
The takeaway for landlords is clear: embracing voucher programs could provide a steady stream of reliable tenants, despite the lower net income compared to cash-paying tenants. Given the economic realities faced by renters in ZIP 39074, accepting vouchers can be a viable strategy to ensure property occupancy and long-term stability.
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.