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 | $1,420 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $239,928 | 0.7% | D |
| 3BR | $1,990 | $275,281 | 0.72% | D |
| 4BR | $2,190 | $452,457 | 0.48% | F |
| 5BR | $2,540 | $784,232 | 0.32% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,510 for ZIP 39232 (Flowood, MS) in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $340,719. To address this concern, we need to consider the average mortgage rates in Flowood, MS. According to recent data, the average 30-year fixed mortgage rate in Flowood, MS, ranges from 6.5% to 7%. A conservative estimate using a 7% interest rate on a $340,719 home would result in a monthly mortgage payment of approximately $2,234. This amount exceeds the FMR, indicating that the rent alone would not cover the mortgage expense.
Another objection could be the level of rental demand, which stands at 50.8%. This figure suggests a balanced market where half of the housing units are rented out, but it does not guarantee strong demand. The rental vacancy rate in ZIP 39232 is 9.4%, which is relatively high. A higher vacancy rate means that there may be more competition among landlords to attract tenants, potentially putting downward pressure on rental prices. However, the median gross rent in 2024 is projected to be $1,506, which aligns closely with the FMR, suggesting that the market is stable despite the vacancy rate.
The final objection concerns whether Section 8 vouchers will keep pace with market rents of $1,519. Unfortunately, the data does not provide specific figures for voucher amounts in ZIP 39232 for 2024. Generally, voucher amounts tend to lag behind market rents, but they do adjust annually based on local market conditions. Given the projected FMR, it is reasonable to expect that voucher amounts will increase to some degree, although they may still not fully match the market rents.
In summary, while the FMR in ZIP 39232 is unlikely to cover the mortgage on a $340,719 home, the rental market appears stable with a moderate vacancy rate. As for Section 8 vouchers, their ability to keep up with market rents remains uncertain without specific data, but they should adjust to reflect local conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.