Location: Jackson, MS | Metro: Jackson, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
The potential risks for a Section 8 investment in ZIP code 39205 in Unknown, MS, must be carefully considered. Tenant turnover can be a significant issue when the market rent is not aligned with the Fair Market Rent (FMR) of $1130, which is set for FY 2024. If the local market rent is lower, landlords might face higher turnover rates as tenants seek better deals elsewhere. Conversely, if the market rent exceeds $1130, landlords may struggle to find tenants willing to pay the FMR.
Vacancy exposure is another concern. The average days on market (DOM) for properties in this area is not available, which makes it difficult to predict how long a property might remain vacant between tenants. A longer DOM can lead to increased financial pressure on landlords due to lost rental income and the costs associated with maintaining an unoccupied property.
Deferred maintenance is also a risk factor. With the typical home value and median income in the area being unknown, it's challenging to assess the financial health of the local housing stock. Properties with lower values may require more frequent repairs and maintenance, which can be costly for landlords. Additionally, lower median incomes could mean that tenants have less disposable income to contribute to maintenance costs, increasing the burden on landlords.
However, these risks must be weighed against the high renter share in the area, which is currently unknown. High renter density typically indicates a strong demand for rental housing, including Section 8 vouchers. This can provide some assurance that there will be a steady stream of potential tenants who qualify for assistance.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.