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 analysis for ZIP code 39215 in Mississippi focuses on the potential for Section 8 properties, particularly two-bedroom units. The Fair Market Rent (FMR) for a two-bedroom unit in FY 2024 is set at $1130 annually. However, without specific data on the median home values and current market rents, we can only provide a general overview.
The Section 8 cap rate is calculated by dividing the annual rental income by the property's purchase price, yielding the gross yield. In the case of ZIP 39215, if we assume a median home value that is typical for the area, we can estimate the gross yield. For instance, if the median home value were around $150,000, the gross yield would be approximately 7.5% ($1130 / $150,000 * 100).
Without the actual median home value and market rent figures, it's challenging to provide a precise comparison. However, we can infer that if the market rent significantly exceeds the FMR, the gross yield for market rent would naturally be higher. Conversely, if the median home value is lower, the gross yield based on the FMR would be more attractive.
The lack of detailed information about renter density and days on market (DOM) makes it difficult to determine which scenario is more realistic. A higher renter density might suggest a stronger demand for affordable housing, making Section 8 properties more viable. Shorter DOM could indicate quicker property turnover, which is favorable for landlords.
In conclusion, while the exact figures are not available, the gross yield for a Section 8 property in ZIP 39215 can be estimated to be around 7.5%. This figure should be compared against the expected market yields once those are determined. Investors must also consider the local demand for rentals and the efficiency of property management when deciding between Section 8 and market-rate investments.
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.