Location: Hattiesburg, 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 | $880 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $240,462 | 0.67% | D |
| 5BR | $1,937 | $170,575 | 1.14% | B |
U.S. Census Bureau data (2024)
The ZIP code 39475 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, as the market rent stands at $994 compared to the Fair Market Rent (FMR) of $1120 for FY 2024. This discrepancy suggests that tenants might struggle to find the financial stability needed to maintain long-term leases, leading to higher turnover rates.
Vacancy exposure is another issue due to the lack of available data on the number of days on market (DOM). Without this information, it's difficult to predict how quickly properties can be rented out, especially when considering the lower market rent versus the FMR. This uncertainty increases the risk of extended vacancy periods, which can significantly impact cash flow.
Deferred maintenance is also a notable risk, given the typical home value of $239,769 and the median income of $63,887. The disparity between home values and median incomes indicates that many residents may have limited resources to cover unexpected repairs or maintenance costs, potentially leading to property neglect and increased repair expenses for landlords.
However, these risks must be weighed against the high renter density in the area, represented by an 18.9% renter share. High renter density typically correlates with greater demand for rental housing, including Section 8 vouchers. This demand can help mitigate some of the risks associated with vacancy and turnover, as there is a larger pool of potential tenants who might be able to secure housing through the voucher program.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 39475 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a counterbalance by ensuring a steady stream of potential tenants.
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.