Location: Jackson, 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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $160,567 | 0.67% | D |
| 3BR | $1,270 | $204,687 | 0.62% | D |
| 4BR | $1,410 | $303,276 | 0.46% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 39202 (Jackson, MS) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,010 cover the debt service on a property valued at $187,461?
No. The FMR does not sufficiently cover the debt service on a $187,461 property. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the FMR, it would be challenging to ensure that these expenses are fully covered without additional income sources or subsidies.
It Depends. If your debt service is significantly lower due to favorable financing terms, low property taxes, or minimal maintenance costs, then the FMR might be adequate. However, this scenario is less common and requires careful financial planning.
Yes. This would be an unusual situation in ZIP 39202 given the average property value and typical debt service costs. If you can secure a property for well below $187,461 and have a very low debt service, then the FMR could theoretically cover it.
2) How does the market rent ($1,031 ZORI) compare to the FMR?
Above. The ZORI is slightly above the FMR, indicating that the market rent is higher than what is considered fair market rent for Section 8. This suggests that there is potential to earn more than the FMR from market-rate tenants.
At. Not applicable in this case as the ZORI is already above the FMR.
Below. Not applicable in this case as the ZORI is already above the FMR.
3) Is there sufficient rental demand with 67.5% renters and N/A-day days on market (DOM)?
Yes. With 67.5% of the population renting, there is strong demand for rental properties in ZIP 39202. The lack of data on days on market (DOM) indicates either a robust rental market where units are quickly leased, or that there isn't a significant amount of vacant rental inventory available. In either case, this bodes well for the ability to fill units.
No. This branch is not relevant given the high percentage of renters in the area.
It Depends. While the rental demand appears high based on the percentage of renters, the lack of DOM data introduces some uncertainty. If the market is highly competitive, it may take longer to lease units, impacting cash flow. However, the strong rental demand still supports the viability of the investment.
In summary, while the FMR may not fully cover debt service on a $187,461 property, the slight edge in market rent over the FMR and the high rental demand indicate that Section 8 properties in ZIP 39202 can be viable investments, especially if you can leverage market-rate tenants or find ways to reduce overall costs.
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.