Location: Winston County, MS | Metro: Attala County, MS
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 | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $151,938 | 0.8% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 39108 might raise several valid concerns regarding the feasibility of investing in rental properties through the Section 8 program. These concerns include whether the Fair Market Rent (FMR) of $990 will sufficiently cover mortgage payments on a home priced at $137,672; if the rental demand at 16.9% is substantial enough; and whether voucher amounts will maintain parity with the market rent of $851.
Firstly, let's address the question of whether the FMR of $990 can adequately cover the mortgage on a home valued at $137,672. The FMR is a guideline set by HUD that represents the maximum amount that a Section 8 tenant can pay towards their rent. To determine if this covers the mortgage, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage with an average interest rate of around 5%, the monthly mortgage payment for a home priced at $137,672 would be approximately $740. This figure is well below the FMR of $990, indicating that the FMR should comfortably cover the mortgage payment, leaving room for other expenses such as property taxes, insurance, and maintenance.
The second objection pertains to the level of rental demand in ZIP 39108, which stands at 16.9%. This percentage reflects the proportion of housing units that are rented out. While 16.9% might seem low, it's important to note that rental demand is influenced by various factors including population density, employment opportunities, and the overall economic climate. To fully evaluate this concern, we would need additional data on the vacancy rate and the number of potential renters in the area. However, the current data does suggest that there is a base level of demand, though it may not be robust enough to support a large influx of new rental properties.
Lastly, the investor may wonder if voucher amounts will keep up with the market rent of $851. The FMR is typically higher than the average voucher amount, but it's crucial to monitor how closely these two figures align. In ZIP 39108, the FMR is $990, which is above the market rent of $851. This suggests that even if voucher amounts do not perfectly match market rents, they are likely sufficient to cover the cost of renting a property at the average market rate. However, without specific data on the average voucher amount in ZIP 39108, we cannot definitively state how closely they track the market rents. It's advisable to stay informed about any changes in voucher policies and amounts to ensure long-term viability.
In conclusion, while there are valid concerns to consider when investing in ZIP 39108 through the Section 8 program, the data provides a positive outlook on the ability to cover mortgage costs and meet market rents. Rental demand appears to be present but requires further investigation into local market conditions. Voucher amounts seem adequate relative to market rents, though ongoing monitoring is recommended.
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.