Location: Lauderdale County, MS | Metro: Clarke County, MS
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 | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $42,449 | 2.33% | A+ |
| 3BR | $1,300 | $98,084 | 1.33% | A |
| 4BR | $1,310 | $156,870 | 0.84% | C |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 39301, Meridian, Mississippi, for the fiscal year 2026 is set at $900. This figure represents the payment standard for Section 8 housing assistance in the area, meaning it's the maximum amount the government will pay toward a tenant's rent. It does not reflect the total rent you can charge; rather, it caps the portion covered by the voucher program.
In comparison, the local Zillow Observed Rent Index (ZORI) stands at $1,612. This indicates the average rent price for similar units in the market. By participating in the Section 8 program, landlords agree to accept a lower rate compared to market rents, but they still receive a stable income source guaranteed by the government.
The demand for rentals in Meridian is robust, with 39.6% of residents being renters. This high percentage suggests there is a strong market for rental properties, including those available through Section 8. However, it also means competition from other landlords who might offer higher quality or amenities that attract tenants willing to pay more than the FMR.
When considering an acquisition in this area, the median household income of $96,582 is a key factor. While this figure is above the FMR, it's important to note that Section 8 tenants typically have incomes below half of the area median. Therefore, your property should be priced and maintained to meet the criteria for the program without exceeding the FMR.
Before deciding to take on a Section 8 rental, verify that the property meets all necessary inspection requirements. The housing authority conducts thorough inspections to ensure units are safe, decent, and sanitary. Failure to meet these standards can result in disqualification from the program, leading to potential financial losses.
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.