Section 8 Fair Market Rent (FMR) for ZIP 39110 - 2027

Investment Score for ZIP 39110

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,650
1 Bedroom	$1,650
2 Bedrooms	$1,930
3 Bedrooms	$2,300
4 Bedrooms	$2,540
5 Bedrooms	$2,946
6 Bedrooms	$3,300
7 Bedrooms	$3,564
8 Bedrooms	$3,742

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,930	$268,963	0.72%	D
3BR	$2,300	$303,750	0.76%	D
4BR	$2,540	$452,188	0.56%	F
5BR	$2,946	$657,365	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 39110 (Madison, MS) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 39110 in 2026 is set at $1930 for a two-bedroom unit. This figure represents 18.5% of the median household income in the area, which is $125,506. However, the actual rental market in ZIP 39110 is significantly higher than the FMR. The Zillow median price for a two-bedroom home is $262,263, indicating that the average rent for a similar property would be much higher than the FMR. To understand the constraints for voucher holders, we need to look at the price-to-FMR ratio. For a two-bedroom unit, this ratio is 11.3x, meaning that the average rent is approximately 11.3 times the FMR. This suggests that voucher holders face significant challenges in finding affordable housing within the ZIP code. The FMR for a three-bedroom unit is $2310, and for a four-bedroom unit, it is $2560. These figures are likely to be even further below the actual market rents, making it difficult for families to find suitable accommodation using their vouchers. #### Affordability & Renter Profile ZIP code 39110 has a relatively low renter population percentage of 9.1%, indicating that it is primarily a homeowner-dominated market. With a high occupancy rate of 96.2%, the rental market appears to be quite tight, suggesting limited supply and potentially higher competition among renters. Given the median household income of $125,506, the majority of residents can afford homes without relying on rental assistance programs like Section 8. The small proportion of renters implies that those who do rent are likely to be in higher-income brackets or have other financial means to cover the high costs of renting. #### Investor Angle From an investor perspective, the ZIP code 39110 presents a challenging environment for cash flow positive investments based solely on FMR. The FMR for a two-bedroom unit is $1930, while the average market rent is likely to be around $21,800 per year ($262,263 / 11.3). This discrepancy indicates that landlords would need to charge well above the FMR to achieve profitability. Additionally, the high price-to-FMR ratio suggests that properties rented at FMR levels would struggle to attract tenants, especially given the tight rental market and the high cost of living in the area. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the limited number of voucher holders and the high market rents compared to FMR. Investors looking to capitalize on Section 8 vouchers would need to carefully consider the local market dynamics and possibly target lower-income areas within the ZIP code where affordability is more aligned with FMR. #### Specific Actionable Insights 1. **Target Lower-Income Neighborhoods**: Despite the overall high median income, there may be pockets within ZIP 39110 where the income levels are closer to the FMR. Investors should focus on these areas to maximize the likelihood of attracting voucher holders. For instance, a two-bedroom unit priced at $1930 would be more feasible in neighborhoods with lower average incomes. 2. **Consider Multi-Family Properties**: Single-family homes in ZIP 39110 are likely to be out of reach for most Section 8 voucher holders. Instead, investors might want to explore multi-family properties where the individual units could be priced closer to the FMR. This approach could help in achieving better occupancy rates and cash flow stability. 3. **Rent Stabilization Policies**: Given the high price-to-FMR ratio, investors should monitor any potential rent stabilization policies or regulations that could affect the rental market. If such measures are introduced, they could make it easier for voucher holders to find housing within the ZIP code. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 39110 is to **Skip**. The high median income and low renter population percentage indicate that the market is not conducive to cash flow positive investments based on FMR alone. The tight rental market and high price-to-FMR ratio further complicate the ability to attract and retain voucher holders. Investors seeking opportunities in this ZIP code should consider alternative strategies or look into neighboring areas with more favorable demographics for Section 8 rentals.

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.