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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,080 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $25,791 | 3.53% | A+ |
| 3BR | $1,080 | $63,149 | 1.71% | A+ |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $900 for ZIP 39203 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $47,740. To address this concern, let's consider the typical mortgage rates. Assuming a 30-year fixed-rate mortgage with an interest rate of approximately 5%, the monthly payment on a $47,740 home would be around $250. This leaves ample room for profit when the FMR is considered.
The investor might also doubt if there is sufficient demand from renters at a 63.4% occupancy rate. According to recent listings, there are several houses available for rent in ZIP 39203. For instance, Zillow reports 11 single-family rental listings, while Trulia shows 29 rental homes. These figures suggest that there is a reasonable supply of rental properties, indicating a steady demand from tenants. However, the exact number of potential renters remains unclear, and further investigation into local rental trends could provide a clearer picture.
Another objection could be whether housing vouchers will keep up with the market rents of $735. The Housing Authority of the City of Jackson, Mississippi (JHA) uses a method to calculate the maximum subsidy it can provide toward the contract rent, known as the Voucher Payment Standard (VPS). As of 2024, the FMR for a two-bedroom unit in Jackson is set at $900. Given this, the VPS should align closely with the FMR, suggesting that vouchers will likely cover a significant portion of the $735 market rent. However, the exact amount of the voucher subsidy is not specified in the data provided, so it's advisable to consult the JHA for precise figures.
In summary, the FMR of $900 in ZIP 39203 is more than adequate to cover the mortgage on a $47,740 home. There is a moderate level of rental demand, but the exact number of potential renters needs further analysis. Lastly, while vouchers are expected to keep pace with market rents, specific subsidy amounts should be verified with the local housing authority.
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.