Location: Smith County, MS | Metro: Simpson 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 | $810 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $185,871 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 39111 presents a significant opportunity for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 9,143 residents, nearly one-third (27.5%) are renters, indicating a substantial demand for rental properties. This high percentage of renters suggests that there is likely a robust market for housing vouchers, which can be advantageous for property owners looking to secure consistent rental income.
The median household income in this ZIP is $49,140, which provides insight into the economic landscape and potential affordability challenges faced by local residents. The average market rent of $856 is notably lower than the Fair Market Rent (FMR) of $900 for FY 2024, suggesting that landlords may have some flexibility in pricing without alienating the majority of potential tenants.
To further analyze the suitability of this area for Section 8 tenants, it's important to consider the proportion of income that goes towards rent. In ZIP 39111, the typical rent eats up approximately 17.4% of the local median income ($856 out of $49,140). This figure is below the national average, indicating that rent is relatively affordable compared to incomes. However, the gap between market rent and FMR highlights an area where government subsidies could play a critical role in helping tenants afford higher-quality living spaces.
Landlords in ZIP 39111 should anticipate a tenant pool that includes a significant number of individuals and families who rely on housing vouchers to meet their rental obligations. These tenants are typically vetted through rigorous background checks and have a history of adhering to lease agreements. They represent a stable source of income for property owners, especially given the high percentage of renters in the area.
In conclusion, ZIP 39111 offers a favorable environment for landlords looking to attract Section 8 tenants. The area's high rental demand, coupled with the affordability of typical rents relative to local incomes, makes it an attractive location for both landlords and voucher holders. Landlords can expect a steady stream of tenants who are committed to maintaining their homes and fulfilling their lease terms, thereby ensuring long-term stability and profitability for their investments.
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.