Location: Scott County, MS | Metro: Scott County, MS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 39359 might raise several concerns regarding the feasibility of investing in this area, especially under the Section 8 program. Here are some common objections and the data that addresses them.
Objection 1: Will the Fair Market Rent (FMR) of $940 for the metro area in fiscal year 2026 cover the mortgage on a typical home in ZIP 39359?
The data does not provide specific mortgage figures for homes in ZIP 39359. However, it's important to consider that the FMR of $940 is set to ensure that rental properties are affordable to low-income families. If the mortgage payments exceed this amount, it could be challenging to find tenants willing to pay the required portion. Landlords should carefully assess their local housing market and property costs before deciding whether the FMR will sufficiently cover mortgage expenses.
Objection 2: Is there enough renter demand at 42.9%?
The percentage of renters at 42.9% indicates that slightly less than half of the households in ZIP 39359 are renting. This suggests a moderate level of demand, but it's crucial to understand that the success of a rental property also depends on factors such as vacancy rates, average household income, and the availability of other rental options. The 42.9% figure alone does not guarantee strong demand; therefore, additional research is necessary to determine if the rental market in this area can sustain a Section 8 property.
Objection 3: Will vouchers keep pace with market rents of $821?
The Housing Choice Voucher program aims to subsidize rents up to the FMR, which in this case is $940 for fiscal year 2026. Given that the current market rent is $821, the vouchers should adequately cover the rent, assuming they are adjusted annually to reflect changes in the cost of living. However, it's essential to monitor any potential discrepancies between voucher amounts and actual market rents, as these can affect the ability to attract and retain tenants. If market rents rise significantly above the FMR, landlords might struggle to find eligible tenants unless the voucher program adjusts accordingly.
In conclusion, while the data provides some insights into the viability of investing in ZIP 39359 under the Section 8 program, it does not fully answer all questions. Careful consideration of local market conditions, thorough analysis of property costs, and continuous monitoring of both rental trends and voucher policies are recommended for successful investment.
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.