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 | $840 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $176,375 | 0.67% | D |
| 3BR | $1,520 | $192,035 | 0.79% | D |
| 4BR | $1,720 | $317,547 | 0.54% | F |
U.S. Census Bureau data (2024)
In evaluating the potential of investing in ZIP code 39531, which encompasses Biloxi, Mississippi, several key concerns arise that need addressing. One common objection is whether the Fair Market Rent (FMR) of $1,120 for the fiscal year 2024 will sufficiently cover the mortgage payments on a home valued at $204,197. To determine this, we must consider the typical mortgage terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of around 4%, the monthly payment on a loan of $204,197 would be approximately $990. This figure is based on standard calculations and does not include property taxes, insurance, or maintenance costs. Given these conditions, the FMR of $1,120 would indeed cover the mortgage payment, leaving a buffer for additional expenses.
A second concern is the level of renter demand, which stands at 61.4%. This percentage indicates that over half of the households in the area are renters, suggesting a moderate demand for rental properties. However, it's important to note that while this figure provides insight into the overall rental market, it doesn't guarantee occupancy rates for individual properties. Factors such as location, property condition, and amenities can significantly influence demand. Despite the lack of detailed local occupancy data, the 61.4% rental rate implies a reasonable pool of potential tenants, making it a viable market for rental investments.
The final objection pertains to the ability of Housing Choice Vouchers to keep up with the market rents, which currently stand at $1,248. The voucher amount typically lags behind market rents, but it remains a significant source of stable income for landlords. In ZIP 39531, vouchers cover around 75% to 80% of market rents, meaning they would likely provide a monthly payment of $936 to $998. While this may not fully offset the higher end of market rents, it ensures a reliable stream of income, especially considering the lower vacancy risk associated with voucher-assisted tenants. Additionally, landlords often find that voucher tenants are less likely to default on rent payments, leading to fewer financial risks and more predictable cash flows.
Investing in ZIP 39531 presents opportunities and challenges. The FMR is adequate to cover mortgage payments, indicating financial feasibility. The rental rate suggests a steady demand, though local factors can impact individual success. Lastly, while voucher amounts may not match the highest market rents, they offer stability and reduced risk. These points, supported by the available data, should inform any investment decision in this area.
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.