Location: Gulfport-Biloxi, MS | Metro: Gulfport-Biloxi, MS HUD Metro FMR Area
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 | $850 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $990 | $156,387 | 0.63% | D |
| 2BR | $1,200 | $216,161 | 0.56% | F |
| 3BR | $1,540 | $252,819 | 0.61% | D |
| 4BR | $1,740 | $341,747 | 0.51% | F |
| 5BR | $2,018 | $441,863 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 39520, which encompasses Bay Saint Louis, MS, and falls under the Gulfport-Biloxi, MS HUD Metro FMR Area, reveals a competitive landscape where the HUD Fair Market Rent (FMR) aligns closely with the actual market rent. For fiscal year 2024, the HUD FMR stands at $1,130, while the Census ACS data indicates an average market rent of $1,127. This suggests that landlords participating in the Section 8 program can expect to cashflow marginally, with minimal buffer against unexpected expenses.
To further understand the investment potential, consider the median home value in the area, which is $237,253. The rent-to-price ratio can be calculated by dividing the monthly rent by the home value, resulting in a ratio of approximately 0.47%. This low ratio indicates that rental income alone may not fully cover the cost of ownership, making it essential for landlords to carefully manage their expenses and consider the long-term stability and appreciation potential of the market.
The lack of available data on median days on market (DOM) and the percentage of homes requiring price cuts does not significantly impact the analysis of rent versus buy dynamics. However, the strong correlation between the HUD FMR and the market rent suggests a stable rental market, with little room for significant price adjustments.
The strongest investor angle in ZIP 39520 is stability. Landlords and small-portfolio investors can rely on consistent rental income, given the close alignment between HUD FMR and market rents, ensuring steady cash flow and predictable returns over time.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.