Section 8 Fair Market Rent (FMR) for ZIP 39307 - 2027

Location: Lauderdale County, MS | Metro: Clarke County, MS

Investment Score for ZIP 39307

A+

Monthly Rent (2BR)

$910

Median Price (2BR)

$40,163

1% Rule

2.27%

Annual Yield

27.19%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$790
1 Bedroom	$810
2 Bedrooms	$910
3 Bedrooms	$1,200
4 Bedrooms	$1,200
5 Bedrooms	$1,392
6 Bedrooms	$1,559
7 Bedrooms	$1,684
8 Bedrooms	$1,768

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$910	$40,163	2.27%	A+
3BR	$1,200	$67,083	1.79%	A+
4BR	$1,200	$89,247	1.34%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,047

Median Household Income

$30,413

Housing Units

7,144

Renter Percentage

44.8%

Occupancy Rate

81.6%

Renter Occupied

2,609

If a landlord is considering purchasing a property in ZIP code 39307 (Meridian, MS) for Section 8 purposes, they must follow a decision tree based on the following criteria:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for Meridian, MS, in the metro area for fiscal year 2026 is $900. To determine if this clears debt service on a property valued at $63,401, we need to calculate the DSCR. Assuming a typical mortgage payment and property taxes, the monthly debt service would be around $400-$500. Therefore, with an FMR of $900, the DSCR would be favorable, indicating that the rent can cover the monthly debt service.

Step 2: Market Rent Comparison

The Census ACS reports the average market rent for Meridian, MS, at $863. This figure is slightly below the FMR of $900. Since the FMR is higher than the market rent, it suggests that Section 8 properties could potentially command rents closer to the FMR, making them more attractive to landlords who want to ensure a steady income stream.

Step 3: Rental Demand Analysis

In Meridian, MS, 44.8% of residents are renters. However, the Days on Market (DOM) data is not available, which typically indicates the speed at which rental properties are filled. Despite the lack of DOM data, the significant percentage of renters implies strong demand for rental housing. This high percentage of renters supports the viability of investing in Section 8 properties in this area.

Decision Tree Outcome

If Yes to Step 1: The FMR of $900 is sufficient to cover the debt service on a $63,401 property. This means the landlord can expect stable cash flow from Section 8 tenants.
If Yes to Step 2: The market rent being below the FMR suggests that Section 8 properties can charge closer to the FMR, providing better financial returns compared to non-subsidized rentals.
If Yes to Step 3: With 44.8% of the population renting, there is a substantial demand for rental properties, supporting the investment in Section 8 housing.
If It Depends to Step 3: Without DOM data, the exact speed of filling vacancies is uncertain. However, given the high percentage of renters, it's reasonable to assume that vacancies will be filled relatively quickly.

Based on these steps, a landlord should consider investing in ZIP code 39307 for Section 8 properties. The favorable DSCR, competitive market rent, and strong rental demand make it a sound investment choice.

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.