Location: Lauderdale County, MS | Metro: Lauderdale 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 | $980 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $93,100 | 1.2% | A |
| 3BR | $1,480 | $159,579 | 0.93% | C |
| 4BR | $1,480 | $266,543 | 0.56% | F |
| 5BR | $1,717 | $371,535 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 39305, located in Meridian, MS, Lauderdale County, offers a nuanced investment opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, covering the fiscal year 2026, is set at $1,000 per month for a metro-wide scope. In contrast, the Zillow Observed Rent Index (ZORI), which reflects the actual market rent, stands at $1,295 per month. This discrepancy indicates that voucher tenants in this region will only cashflow marginally at the FMR rate, requiring landlords to either accept lower profits or seek out premium units that can command higher rents.
To further analyze the investment potential, consider the median home value in the area, which is $185,352. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 7.5%. This suggests that the rental market is relatively stable compared to the housing market, offering a good balance between rental income and property values.
Regarding the days on market (DOM) and price cut percentages, the data shows a median DOM of N/A and a price cut share of 0.2%. While these figures are incomplete, they do indicate a low likelihood of needing to reduce asking prices significantly, which is a positive sign for the stability of the real estate market. However, the missing DOM data means we cannot fully assess how quickly properties are turning over, which is an important metric for understanding the liquidity and demand in the rental market.
The strongest investor angle in ZIP 39305 is likely stability. Given the low price cut share and the relatively high median home value, investors can expect steady rental income without significant fluctuations in property values or frequent need to adjust their pricing strategies.
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.