Section 8 Fair Market Rent (FMR) for ZIP 39173 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The ZIP code 39173, located in Tinsley, Mississippi, presents several key considerations for real-estate investors interested in the Section 8 housing market. Let's address some common objections that might arise.

• Will FMR $930 (zip FY 2024) cover the mortgage on a home?: The available data does not provide the average home price in ZIP 39173. However, it is crucial to consider that the Fair Market Rent (FMR) of $930 may not sufficiently cover the mortgage on a typical home in this area without additional income sources. Investors should carefully calculate their expected returns and costs before proceeding.
• Is there enough renter demand at 0.0%?: The search result indicates that ZIP code 39173 has a small percentage of vacancies, suggesting strong demand for rental properties. Despite the reported 0.0% vacancy rate, which may be an anomaly due to limited data, the overall low vacancy rate implies that there is sufficient tenant interest to fill units. This supports the potential for successful Section 8 investments in this area.
• Will vouchers keep pace with market rents?: The data does not specify the exact relationship between Section 8 voucher amounts and market rents in ZIP 39173. However, historically, voucher programs aim to reflect local market conditions. While there is no guarantee that voucher payments will always match or exceed market rents, the Section 8 program generally adjusts its rates periodically to align with the Fair Market Rents set by HUD. Therefore, it is reasonable to expect that voucher payments will maintain a close alignment with the $930 FMR, although investors should monitor these adjustments closely.

In conclusion, while there are valid concerns regarding the adequacy of FMRs to cover mortgage costs and the precise correlation between voucher payments and market rents, the strong rental demand in ZIP 39173 suggests a favorable environment for Section 8 investments. Careful financial planning and ongoing monitoring of local market conditions will be essential for success.

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.