Location: Winston County, MS | Metro: Neshoba 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 | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $157,958 | 0.87% | C |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 39346 reveals several potential challenges for landlords considering Section 8 participation. Tenant turnover is a significant concern, with market rents set at $840 versus the Federal Market Rent (FMR) of $960 for fiscal year 2026 in the metropolitan area. This discrepancy can lead to higher vacancy rates and financial instability, as landlords might struggle to find tenants willing to pay the FMR rate.
Vacancy exposure remains another critical issue. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long properties might remain vacant between tenancies. High vacancy periods can result in substantial revenue loss for landlords, especially if they are reliant on steady rental income.
Deferred maintenance is also a notable risk. With a typical home value of $151,179 and a median income of $62,439, there is a considerable gap that could impact a landlord's ability to maintain properties adequately. Low-income owners may prioritize other expenses over property upkeep, leading to potential issues such as increased repair costs and decreased property value over time.
However, these risks must be weighed against the high renter share in the area, which stands at 24.7%. A significant portion of the population renting indicates a robust demand for housing, particularly among those who rely on Section 8 vouchers. This high renter density can translate into a consistent pool of potential tenants, reducing the overall risk of vacancy.
In conclusion, the risks associated with Section 8 participation in ZIP 39346 are substantial but manageable given the high renter demand. Landlords should prepare for potential financial instability due to lower market rents compared to FMR, the possibility of extended vacancy periods, and the need for regular maintenance despite median income levels. Despite these challenges, the high renter share suggests a stable tenant base.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.