Location: Smith County, MS | Metro: Smith County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 39116, as set by the U.S. Department of Housing and Urban Development for metro fiscal year 2026, is $1,140. This figure represents the maximum amount that a landlord can receive from the government under the Section 8 program, which is not the same as the rent you will charge your tenants. It's important to understand that the FMR is a benchmark used to determine the payment standard for vouchers, not an indicator of the market rent.
In ZIP code 39116, the average rent for properties is significantly lower at $427 according to the latest Census American Community Survey (ACS) data. This means that while the government will cover up to $1,140 per month, your actual rent should be closer to the local average to attract tenants. The difference between the FMR and the local rent average can be used to negotiate higher rents with voucher holders, but it's crucial to stay competitive with other local rentals.
The renter share in ZIP 39116 is 7.1%, indicating a moderate demand for rental properties. However, this percentage can still translate into a substantial number of potential tenants given the right property and location. When acquiring a new rental property, expect to pay around $171,514 based on recent median home values. This price reflects the typical cost for a property suitable for Section 8 tenancy, though it can vary depending on the condition and size of the property.
To ensure the property meets the necessary requirements for a Section 8 rental, you must verify that it complies with the Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for habitation. A thorough inspection and any required repairs must be completed before signing a contract with a tenant using a Section 8 voucher. This step is critical to avoid delays in the leasing process and to maintain eligibility for the program.
In summary, the FMR of $1,140 sets the upper limit for government payments, while the local average rent of $427 guides the pricing strategy to attract tenants. With a 7.1% renter share, there is a reasonable demand for rental properties, and the acquisition cost of approximately $171,514 provides a baseline for purchasing a property in ZIP 39116. Before proceeding, make sure the property passes the HQS inspection to secure a smooth transition into Section 8 tenancy.
Data Sources: FMR data from HUD (2027). 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.