Location: Lawrence County, MS | Metro: Covington County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,080 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
U.S. Census Bureau data (2024)
ZIP code 39474, located in Prentiss, MS, offers a unique balance between yield and stability for Section 8 landlords and small-portfolio investors. With a HUD Fair Market Rent (FMR) of $900 for the fiscal year 2024, the ZIP code stands out compared to the average market rent of $753. However, the median home value at $84,266 suggests that property investments should be approached with caution.
The rental market in 39474 is characterized by a relatively low percentage of renters, at 19.8%. This figure is indicative of a community where homeownership is prevalent, which can impact the demand for rentals. Additionally, the median household income in the area is $35,586, which provides some insight into the financial capacity of potential tenants.
To classify this ZIP code, we must consider the yield and stability factors. The FMR of $900 versus the market rent of $753 indicates a higher potential for rental income when utilizing Section 8 subsidies. However, the stability is somewhat compromised by the low renter population and limited data on days on market (DOM), suggesting that the rental market might be less fluid and more challenging to manage.
This makes ZIP 39474 neither a high-yield/low-stability flip-style market nor a steady-cashflow zone, but rather a middle-ground opportunity. Investors should expect a modest yield enhancement due to the Section 8 subsidy, but they must also prepare for potentially lower tenant turnover and the challenges associated with managing properties in an area where homeownership is the norm.
Investors considering this ZIP code should focus on properties that offer good value for the $84,266 median home price and ensure that their investment strategy accounts for the nuances of the local rental market. While the potential for increased rental income exists, it is balanced by the need for a stable and reliable tenant base.
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.