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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $30,526 | 3.14% | A+ |
| 3BR | $1,140 | $52,619 | 2.17% | A+ |
| 4BR | $1,260 | $92,473 | 1.36% | A |
U.S. Census Bureau data (2024)
The Section 8 program's viability in ZIP code 39213, located in Jackson, Mississippi, is contingent upon the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $920, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), is $988. This represents a gap of $68, or approximately 7.4%, between what the government deems a fair rental price and the prevailing market rate.
In Jackson, where 52.7% of residents are renters, and the median home value is $51,015 with a median income of $29,541, landlords and small-portfolio investors must consider the implications of this gap. When the FMR is less than the market rent, as it is here, accepting Section 8 housing vouchers means renting properties at a rate below the open-market value. This can translate into lower yields compared to renting out units at market rates.
The cost of housing voucher tenants below open-market rates is multifaceted. Firstly, it affects the cash flow directly, as landlords receive $920 instead of potentially charging $988 per month. Secondly, there may be additional administrative burdens associated with managing Section 8 properties, including compliance with HUD regulations and inspections, which can further reduce net yields.
Despite these costs, the decision to participate in the Section 8 program should also factor in the stability it provides. Voucher holders typically have reliable sources of funding for their rent through the federal government, reducing the risk of non-payment and vacancy. Moreover, given the economic conditions in Jackson, with a median income significantly below the national average, Section 8 can serve as a critical source of steady rental income in an area where many residents struggle to afford market-rate rents.
To conclude, the $68 gap between the FMR and market rent in ZIP 39213 highlights the trade-offs landlords face when considering Section 8 tenants. While the direct rental income is lower, the program offers a stable and predictable source of revenue, particularly valuable in a market with a high percentage of renters and relatively low median incomes.
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.