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 | $1,100 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $68,563 | 1.88% | A+ |
| 3BR | $1,540 | $100,243 | 1.54% | A+ |
| 4BR | $1,700 | $160,849 | 1.06% | B |
| 5BR | $1,972 | $209,243 | 0.94% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 39206, located in Jackson, MS, within Hinds County, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1130 per month for fiscal year 2024. This SAFMR figure is specific to this ZIP code, meaning it's tailored to the local rental market conditions rather than being a uniform rate across the entire county or metropolitan area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,399. This indicates that the average rent for a similar two-bedroom unit in the same area is higher than the SAFMR. However, landlords participating in the Section 8 program receive payments based on the SAFMR, not the market rent. This can create a financial gap between the market rate and the amount reimbursed by the government.
A Section 8 voucher typically covers the difference between the SAFMR and what the tenant can afford to pay. The tenant's contribution is generally 30% of their adjusted income. If we assume an average adjusted income of $1,500 for a tenant, their portion would be around $450. The remaining amount, up to the SAFMR, is paid by the Housing Authority. In addition, there are utility allowances which vary but are typically around $200-$300 per month.
Therefore, if a tenant has an adjusted income of $1,500, the total reimbursement to the landlord for a two-bedroom unit would be approximately $1130. This includes the tenant's contribution of $450 plus the utility allowance, which we will estimate at $250, bringing the total to $700 from the tenant and $430 from the Housing Authority, summing up to $1130.
The typical reimbursement gap for a two-bedroom unit in ZIP 39206 is thus the difference between the market rent of $1,399 and the SAFMR reimbursement of $1130, resulting in a gap of $269 per month. This means landlords must either accept a lower rent than the market rate or seek ways to reduce costs to remain competitive while still benefiting from the stability of the Section 8 program.
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.