Location: Montgomery County, MS | Metro: Attala County, MS
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 | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $138,287 | 0.82% | C |
U.S. Census Bureau data (2024)
ZIP 39176, located in Montgomery County, MS metro, can serve as an anchor for cash flow within a Section 8 portfolio strategy. The primary reason is the significant spread between the Fair Market Rent (FMR) and the actual median home value in the area.
The FMR for a four-bedroom unit in the MS metro for fiscal year 2026 is set at $900. This figure represents the maximum amount that a landlord can charge for a rental property under the Section 8 program. In contrast, the median home value in ZIP 39176 is $146,773, indicating that properties in this area are generally undervalued relative to their potential rental income under the Section 8 program.
While the data does not provide a specific percentage for price-cut shares or days on market (DOM), the low median home value suggests that there may be opportunities to acquire properties at a discount. However, these factors do not significantly influence the decision to classify ZIP 39176 as a cash-flow anchor given the available information.
The high renter share of 28.0% and median income of $47,195 further support the classification of ZIP 39176 as a cash-flow anchor. These figures indicate a substantial demand for affordable rental housing, which aligns well with the Section 8 program's aim to provide low-income families with suitable accommodation.
To summarize, ZIP 39176 should be considered as a cash-flow anchor within a Section 8 portfolio due to the favorable spread between the FMR ($900) and the median home value ($146,773). This allows landlords to secure steady, government-backed rental income, which is crucial for maintaining financial stability in a real estate investment portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.