Location: Hattiesburg, MS | Metro: Hattiesburg, MS MSA
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 | $830 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $185,261 | 0.74% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 39425 presents a unique set of dynamics that both landlords and small-portfolio investors should consider. The median home value stands at $153,077, which provides a foundational metric for assessing the overall health and potential growth of the housing market in this area.
The fact that there is no percentage of listings being reduced signals stability in the selling market. This suggests that homeowners are not feeling pressured to lower their asking prices, indicating a balanced market where neither buyers nor sellers hold significant advantage. However, the lack of data on the median days on market (DOM) prevents a full assessment of how quickly homes are moving, which could otherwise provide insight into buyer demand.
On the rental side, the Federal Market Rent (FMR) for ZIP code 39425 is forecasted to be $900 for fiscal year 2024, while the current market rent, according to Census ACS data, is $531. This substantial gap between the FMR and actual market rent suggests an opportunity for landlords to gradually increase rents without significantly impacting occupancy rates. The FMR serves as a benchmark for fair market values, often used by government programs, and can indicate upward pressure on rental prices.
For long-term investors, the setup implies a realistic appreciation thesis. With the median home value currently at $153,077 and the potential for rental prices to rise towards the FMR, there is a strong case for property values to appreciate over the next 12-24 months. This appreciation is driven by the underlying demand for rentals, which is likely to push up the value of properties as they become more attractive to both owners and renters.
The combination of stable selling prices and the potential for rental price increases points to a market where pricing power will shift slightly towards landlords and sellers. Investors should focus on maintaining quality properties that can command higher rents and potentially higher sale prices in the future, as the market trends suggest a favorable environment for value growth.
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.