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 | $1,260 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $128,826 | 1.15% | B |
| 3BR | $1,760 | $190,569 | 0.92% | C |
| 4BR | $1,950 | $280,554 | 0.7% | D |
| 5BR | $2,262 | $439,136 | 0.52% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 39211, located in Jackson, MS, Hinds County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1340. This figure represents the maximum amount that the housing authority will pay for a unit of this size. However, the local market rent, as measured by ZORI (Zillow Observed Rent Index), is higher at $1645.
A landlord participating in the Section 8 program receives a subsidy from the government to cover part of the rent. The tenant is responsible for paying a portion of the rent, which is typically around 30% of their income. In ZIP 39211, if the tenant's income is such that they can contribute $402 per month (30% of an assumed income of $1340), then the total rent paid by the tenant and the subsidy would be $1742, assuming a standard utility allowance of $100.
However, since the SAFMR is capped at $1340, the landlord will only receive this amount as reimbursement from the housing authority, even though the total rent due (tenant contribution + subsidy) might exceed this cap. Therefore, the actual reimbursement for a landlord in this scenario would be $1340, regardless of the higher market rent of $1645.
This means that there is a reimbursement gap when the market rent exceeds the SAFMR. For a two-bedroom apartment in ZIP 39211, the gap is $305 ($1645 - $1340). This gap must be covered by the tenant, who would have to pay the additional amount above their 30% contribution to meet the market rent. If the tenant cannot afford this extra cost, it could result in the landlord receiving less than the market rent, thus reducing the profitability of renting to Section 8 tenants.
In summary, landlords in ZIP 39211 should expect a reimbursement of $1340 for a two-bedroom apartment, leading to a reimbursement gap of $305 compared to the local market rent of $1645. This economic reality is critical for landlords and small-portfolio investors to understand before entering into Section 8 agreements.
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.