Location: Yazoo 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 | $1,050 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,610 | $116,285 | 1.38% | A |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 39146 provides insight into potential rental yields under government-subsidized housing programs versus the current market conditions. To begin, let's annualize the Fair Market Rent (FMR) and market rent figures for a two-bedroom property in this area.
The annualized FMR for a two-bedroom property in ZIP 39146 for fiscal year 2024 is $12,120 ($1010 x 12 months). This represents the maximum amount that can be charged for a Section 8 rental agreement. Meanwhile, the annualized market rent based on the Census ACS data stands at $11,256 ($938 x 12 months).
To calculate the gross yield, we divide the annual rental income by the median home value. For the FMR scenario, the gross yield is approximately 11.15%. This is derived from dividing $12,120 by the median home value of $108,674. In contrast, the gross yield based on market rent is slightly lower at around 10.36%, calculated by dividing $11,256 by the same median home value.
The difference between these yields is significant when considering investment strategies. The FMR scenario offers a higher gross yield, which might initially seem more attractive. However, it's important to consider the broader context of the local rental market.
In ZIP 39146, the renter density is 22.9%. This relatively low percentage suggests that there may be fewer tenants interested in renting through Section 8, as the majority of residents likely own their homes. Additionally, the lack of available data on days on market (DOM) means that we cannot accurately assess how quickly properties might be rented out under either scenario.
Given these factors, the market rent scenario is likely more realistic for most landlords and small-portfolio investors. While the gross yield is slightly lower at 10.36%, the higher probability of finding willing tenants and the absence of the administrative complexities associated with Section 8 might outweigh the benefits of the higher FMR yield.
In conclusion, while the Section 8 program offers a gross yield of 11.15%, the market rent scenario presents a more practical option with a gross yield of 10.36%. Investors should weigh the higher yield against the potential challenges of tenant availability and administrative overhead.
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.