Section 8 Fair Market Rent (FMR) for ZIP 39503 - 2027

Investment Score for ZIP 39503

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$870
1 Bedroom	$1,010
2 Bedrooms	$1,220
3 Bedrooms	$1,570
4 Bedrooms	$1,770
5 Bedrooms	$2,053
6 Bedrooms	$2,299
7 Bedrooms	$2,483
8 Bedrooms	$2,607

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$147,974	0.82%	C
3BR	$1,570	$203,526	0.77%	D
4BR	$1,770	$289,114	0.61%	D
5BR	$2,053	$416,938	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 39503 (Gulfport, MS) #### Section 8 Voucher Dynamics In ZIP code 39503, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1170 per month for 2026. This figure represents 22.4% of the median household income of $62,641, indicating that it is within the affordability range for many residents. However, the actual rental market in Gulfport presents a different picture. The Zillow median price for a two-bedroom property is $141,619, which translates into a monthly rent of approximately $1179 based on a 5% annual rental yield. This means that the actual rents in the market are slightly higher than the FMR, creating a constraint for voucher holders who may find it challenging to secure housing within their budget. The gap between FMR and actual rents suggests that landlords might be hesitant to accept vouchers due to the lower payment compared to market rates. #### Affordability & Renter Profile The renter population in Gulfport makes up 29.3% of the total population of 55,059, indicating a significant number of individuals and families who rely on rental housing. Given the occupancy rate of 92.3%, it is clear that the rental market is relatively tight, with few vacant units available. This tightness can drive up rental prices and make it difficult for low-income renters to find affordable housing. The median household income of $62,641 suggests that the majority of renters are likely to be middle-class workers, although there will also be a segment of lower-income individuals who rely heavily on government assistance like Section 8 vouchers. #### Investor Angle For investors focusing on Section 8 properties, the cash flow potential in ZIP code 39503 needs careful consideration. The FMR for a two-bedroom unit is $1170, while the Zillow median price implies a market rent of about $1179. This indicates that investors could potentially achieve a positive cash flow if they manage to rent out their properties at or near market rates. However, the challenge lies in the fact that actual rents are 10.1 times the FMR, suggesting a highly inflated market relative to the FMR. This inflation means that landlords accepting Section 8 vouchers would receive significantly less than what the market demands, making it a riskier proposition. From an investment-grade perspective, the high price-to-FMR ratio of 10.1x indicates a market that is not aligned with federal guidelines for affordability. This misalignment can lead to difficulties in finding tenants willing to pay the FMR, especially when the market rent is so much higher. Investors should be cautious about overpaying for properties, as the potential for negative cash flow is high if they cannot secure market rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments may offer better cash flow opportunities. The FMR for a one-bedroom unit is $950, which is closer to the actual market rent than larger units. Investors should consider acquiring properties that can be converted into multiple one-bedroom units to maximize their chances of securing tenants at or near market rates. 2. **Consider Strategic Pricing**: While the market rent for a two-bedroom unit is around $1179, investors should strategically price their units slightly below market rates but above the FMR to attract both voucher holders and non-voucher tenants. For instance, setting the rent at $1100 could make the property attractive to voucher holders while still providing a modest profit margin for the investor. 3. **Evaluate Property Condition and Location**: Since the market is tight, properties in prime locations or those that require minimal renovations may command higher rents. Investors should prioritize properties that are well-maintained and located in areas with strong demand, such as near employment centers or public transportation hubs. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 39503 is to **Skip**. The inflated market rents suggest that it may be difficult to achieve positive cash flow by relying solely on FMR-based rents. Instead, investors might want to look for markets where the price-to-FMR ratio is lower, or consider diversifying their investment strategy to include a mix of market-rate and subsidized rentals. If investors decide to proceed, they should focus on smaller units and properties in high-demand areas to mitigate risks and improve 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.