Location: Clarke County, MS | Metro: Clarke County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 39363 reveals a unique balance between yield potential and market stability. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $870, while the market rent stands at $800. This indicates that there is a significant gap between what the government deems as fair market rent and the actual market rates, suggesting a higher yield opportunity if properties are rented at or near FMR levels.
The median home value in ZIP 39363 is $69,241, which is notably lower than the average market rent, indicating that this area might be suitable for rental investments rather than owner-occupied homes. However, the area's stability is somewhat mixed. With only 22.3% of residents being renters, it suggests a relatively low demand for rental properties compared to areas where renting is more prevalent. Additionally, the median household income is $31,875, which is a critical factor in assessing the ability of tenants to afford higher rents. Given the income level, it would be prudent to set rental rates closer to the market rate of $800 to ensure tenancy stability.
The lack of data on the number of days a property stays on the market (DOM) makes it challenging to assess how quickly rental properties can be filled. However, considering the income levels and the percentage of renters, the market is likely to be moderately stable but with limited growth potential.
In conclusion, ZIP 39363 presents itself as a middle-ground investment opportunity. It offers higher yields due to the disparity between FMR and market rent, but the stability is compromised by the lower percentage of renters and median income. For landlords and small-portfolio investors, setting realistic rental prices and ensuring quality management can help navigate this balance effectively.
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.