Location: Smith County, MS | Metro: Jackson, 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 | $830 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $215,279 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 39114 is situated in a neighborhood characterized by a relatively low density of rental properties. With a total population of 9,359, only 14.8% of residents are renters, indicating that it is predominantly an owner-occupied area. The median household income in this region stands at $60,286, which places it above the national average and suggests a middle-class demographic. The median home value of $155,434 further supports this, showing that homeownership is affordable and common.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 39114 as of the fiscal year 2024 is set at $930. This figure represents the government's benchmark for rental costs and is crucial for Section 8 investors. In comparison, the actual market rent, according to the Census American Community Survey (ACS), is $855. This indicates that the FMR provides a slight premium over the typical market rates, which could be beneficial for landlords who participate in the program.
Given these conditions, ZIP 39114 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the presence of the Section 8 program ensures a steady stream of tenants and rental income, with minimal risk of vacancy due to the guaranteed payment of the FMR. On the other hand, for hands-on value-add buyers, there is potential to improve properties and charge closer to the FMR, thereby increasing their cash flow. However, the limited number of rental units means that competition among landlords for Section 8 vouchers could be high, necessitating strategic property management and maintenance practices to attract and retain tenants.
In summary, ZIP 39114 offers a stable environment for Section 8 investments, with economic indicators suggesting a solid foundation for rental operations. Whether operating hands-off or pursuing a more active role in property management, the key will be understanding the local market dynamics and leveraging the FMR to maximize profitability while meeting the needs of low-income renters.
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.