Location: Jones County, 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 | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $249,133 | 0.49% | F |
| 4BR | $1,490 | $320,835 | 0.46% | F |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 39437 for Section 8 purposes must follow a structured decision-making process based on the financial metrics and market conditions available.
Step 1: Evaluate if the Fair Market Rent (FMR) of $970 can cover the debt service on a property valued at $191,199. To determine this, calculate the monthly mortgage payment and other expenses such as taxes, insurance, and maintenance. If these costs exceed $970, then the answer is No; purchasing a property in this ZIP code would not be financially viable under Section 8 guidelines.
Step 2: Compare the FMR of $970 with the average market rent of $811. Since the FMR exceeds the market rent, the landlord could potentially charge higher rents to non-Section 8 tenants, making the investment more attractive. However, if the landlord plans to exclusively rent to Section 8 tenants, the answer remains contingent upon Step 1's outcome.
Step 3: Assess the rental demand in ZIP 39437. With 19.7% of residents being renters, there is a moderate level of demand. The N/A-day Days on Market (DOM) indicates that either there is no recent data available or the market is stable, meaning properties are likely rented out within a reasonable timeframe. Given the moderate rental percentage and stable market, the answer is It Depends. It depends on the landlord's ability to find properties where the FMR covers the total debt service, and their willingness to manage a mix of Section 8 and market-rate tenants.
If the landlord finds that the FMR does indeed cover the total debt service, and they are comfortable with the moderate demand and stable market conditions, then the answer is Yes; ZIP 39437 could be a suitable location for a Section 8 investment. However, if the landlord cannot find properties where the FMR meets or exceeds the debt service requirements, the answer is No; the investment would not be profitable.
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.