Location: Covington County, MS | Metro: Covington 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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $196,297 | 0.58% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 39428 does not favor landlords. The Fair Market Rent (FMR) set at $1060 for fiscal year 2024 is significantly higher than the actual market rent of $681 as reported by the Census ACS. This discrepancy suggests that landlords may struggle to find tenants willing to pay the FMR, leading to potential vacancies and financial strain.
Acquisition in ZIP 39428 is relatively affordable with a median home value of $161,352. However, the lack of data on days on market (DOM) and the low percentage of homes requiring price cuts (0.1%) indicate that the housing market might be stable but not particularly active. This could mean slower turnover rates and less liquidity for investments in residential properties.
Tenant demand in ZIP 39428 is modest given its population of 8,977 and a renter share of 23.9%. While there are renters, the limited size of the population base restricts the pool of potential tenants. Landlords should expect competition among rental units and ensure their properties meet market standards to attract and retain tenants.
Verdict: Investing in ZIP 39428 presents challenges due to the unfavorable rent-to-market ratio and limited tenant demand. Despite the affordable acquisition costs, the economic realities suggest that landlords must carefully consider their investment strategy, focusing on property management efficiency and competitive pricing to succeed in this market. The stable housing market implies long-term holdings rather than quick flips, necessitating a patient approach to achieve profitability.
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.