Location: Lauderdale County, MS | Metro: Kemper 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 | $970 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $184,249 | 0.8% | D |
U.S. Census Bureau data (2024)
A household in ZIP code 39320, with a median income of $70,852, faces significant challenges in affording the market rate rent of $833 per month according to the Census Bureau's American Community Survey (ACS) data. This makes it difficult for many residents to cover their housing costs without financial strain.
Comparatively, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 stands at $990. This figure represents the voucher payment standard set by the Department of Housing and Urban Development (HUD) for Section 8 participants. Given that the FMR is higher than the market rate, landlords who accept vouchers might find themselves receiving slightly more than they would from non-voucher tenants paying the market rate.
The ZIP code has a relatively low percentage of renters at 15.4% of the total population of 1,930. This indicates a smaller pool of potential tenants seeking rental properties, which could intensify competition among landlords. The affordability gap between the median income and both the market rate and FMR suggests that landlords should consider the benefits of accepting vouchers to ensure steady occupancy and avoid prolonged vacancies.
Landlords in ZIP 39320 should weigh the pros and cons of voucher versus cash-pay strategies. While voucher tenants offer a more stable income due to government subsidies, the administrative burden and potential delays in payments must be considered. For those who prioritize ease of collection and potentially higher immediate cash flow, focusing on non-voucher tenants who can afford the market rate might be preferable, though vacancy risks are higher given the limited number of renters and the tight budget constraints faced by many households.
The takeaway for landlords is that understanding the local economic landscape, particularly the affordability gap, is crucial for devising an effective rental strategy. Accepting vouchers can provide a buffer against the financial pressures renters face, while targeting higher-income households or those willing to pay above market rates can offer a different path to profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.