Location: Newton 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 | $950 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $115,022 | 0.96% | C |
| 3BR | $1,440 | $201,437 | 0.71% | D |
| 4BR | $1,450 | $310,012 | 0.47% | F |
U.S. Census Bureau data (2024)
Collinsville, Mississippi, located in ZIP code 39325, stands out within Lauderdale County due to its unique demographic and economic characteristics. With a population of 5,997, the area has a relatively low rental rate at 10.3%, indicating that most residents own their homes. The median household income in Collinsville is $88,112, which is higher than the national average, suggesting a prosperous local economy. Additionally, the median home value of $208,803 reflects a stable housing market where property values have remained steady.
The dynamics of Section 8 vouchers in Collinsville present an interesting opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, significantly lower than the current market rent of $1,123, according to the Census Bureau's American Community Survey (ACS). This disparity means that landlords can potentially receive a subsidy of up to $153 per unit above the FMR, making it financially viable to participate in the Section 8 program. Given the low rental rate, there is ample room for growth in the rental sector, particularly for those who can leverage the voucher system to attract tenants.
Evaluating the overall data signature of ZIP 39325, it reads as stable. The high median income and home values indicate a secure economic foundation, while the low rental rate suggests a market that is ripe for investment without the risks associated with transitional areas. For landlords and small-portfolio investors looking to enter the rental market in Collinsville, the Section 8 program offers a reliable source of income and a way to support affordable housing initiatives in a stable community environment.
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.