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 | $860 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $123,775 | 0.99% | C |
| 3BR | $1,570 | $226,449 | 0.69% | D |
| 4BR | $1,620 | $315,501 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 39465 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent, measured by Zillow's Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1,120, while the ZORI indicates a market rent of $1,098. This means that the FMR is $22 higher than the market rent, representing a 2.0% premium.
In this scenario, where the FMR exceeds the market rent, landlords can leverage the Section 8 program to secure steady rental income. Voucher tenants bring predictability and reliability, as their rent is guaranteed by the government up to the FMR level. Given the median home value in the area is $222,929 and the median income stands at $74,035, the 22.7% of renters in the area who might rely on Section 8 vouchers can be seen as a significant opportunity for landlords. The program ensures a consistent cash flow, making it an attractive yield play.
Moreover, the Section 8 program can help mitigate risks associated with vacancies and delinquencies. In Petal, Mississippi, the presence of a sizeable renter population underscores the importance of such programs in maintaining housing affordability. By accepting Section 8 tenants, landlords can fill units at a rate slightly above the market average without the typical fluctuations and uncertainties inherent in the private rental market.
This analysis is grounded in the local context of Petal, Mississippi, where the economic conditions and housing market dynamics influence the attractiveness of the Section 8 program. The relatively low median income suggests that many residents depend on assistance programs like Section 8 to find affordable housing. Therefore, landlords and small-portfolio investors should consider the benefits of participating in the Section 8 program to capitalize on the steady demand for subsidized rentals.
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.