Location: Smith County, MS | Metro: Jasper County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 39338 presents several challenges that potential landlords should consider. First, tenant turnover can be a significant issue due to the disparity between the market rent and the Fair Market Rent (FMR) set at $840 for fiscal year 2026 in the metropolitan area. This discrepancy may lead to tenants seeking better deals elsewhere, increasing the likelihood of frequent turnovers.
Vacancy exposure is another critical risk factor. The average Days on Market (DOM) is not available, which makes it difficult to predict how long a property might remain vacant. High vacancy periods can severely impact cash flow, especially if the market is slow to fill vacancies.
The deferred maintenance exposure is also noteworthy. With a typical home value of $138,270 and a median income of $50,085, there's a possibility that homeowners might delay necessary repairs and upgrades, affecting the overall condition of rental properties. This could result in higher maintenance costs for landlords who take over these properties.
However, these risks must be weighed against the positive aspects of investing in this ZIP code. The renter share stands at 9.5%, indicating a relatively high concentration of renters. This high density often translates into a robust demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of income for landlords participating in the Section 8 program.
In conclusion, despite the potential pitfalls of tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 39338 suggests a moderate risk for a first-time Section 8 landlord. While there are challenges, the demand for affordable housing can mitigate some of these risks, making it a viable option for those willing to manage the associated uncertainties.
Data Sources: FMR data from HUD (2027). 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.