Location: Jefferson Davis County, MS | Metro: Jefferson Davis County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 39427 for Section 8 properties should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $840 cover the debt service on a property valued at $106,834?
Yes. The FMR of $840 is sufficient to cover the debt service on a property valued at $106,834. This means that if you can acquire a property within this price range, the rental income generated by a Section 8 tenant will meet your financial obligations.
No. If the debt service exceeds the FMR of $840, then purchasing a property in ZIP 39427 for Section 8 tenants would not be financially viable. You must ensure that the rental income at least equals the debt service to avoid losses.
2) How does the market rent compare to the FMR?
Market rent is above FMR. In ZIP 39427, if the market rent is higher than $840, it indicates that there might be better opportunities for non-Section 8 rentals, which could yield higher returns.
Market rent is at FMR. If the market rent aligns closely with the FMR of $840, Section 8 rentals can be competitive. However, you must consider other factors such as property management costs and potential vacancy rates.
Market rent is below FMR. If the market rent is below the FMR of $840, Section 8 rentals become even more attractive because they offer a guaranteed minimum rent that is higher than what the market typically provides.
3) Is there sufficient demand for Section 8 rentals?
Yes. With 10.1% of residents being renters, and assuming a reasonable number of days on the market (DOM), there is likely enough demand to sustain a Section 8 property. However, the exact number of DOM is not available, so you must assess local trends to confirm this.
No. If the percentage of renters is significantly lower or the DOM is excessively high, indicating difficulty in finding tenants, then the demand for Section 8 rentals may not be robust enough to justify investment in ZIP 39427.
It depends. The 10.1% of renters suggests some demand, but without knowing the exact DOM, you cannot fully evaluate the market's receptiveness to Section 8 tenants. Local real estate trends and the availability of Section 8 vouchers will play a crucial role in determining whether this demand is sufficient.
Based on these criteria, a landlord can make an informed decision about investing in ZIP 39427 for Section 8 properties. Ensure that the FMR clears the debt service, assess how market rents compare to the FMR, and evaluate the local demand for rentals.
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.