Location: Pascagoula, 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 | $910 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $213,247 | 0.56% | F |
| 3BR | $1,580 | $236,661 | 0.67% | D |
| 4BR | $1,800 | $324,729 | 0.55% | F |
| 5BR | $2,088 | $424,914 | 0.49% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 39532, which covers parts of Biloxi, Mississippi in Harrison County, can be dissected into several key components. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1190. This figure is specific to this ZIP code and reflects the local rental market conditions more accurately than broader regional averages.
In contrast, the local market rent for a similar unit, as indicated by ZORI (Zillow Observed Rental Index), stands at $1,344. This discrepancy highlights the difference between government-set rates and actual market prices. Landlords participating in the Section 8 program must ensure their rents do not exceed the SAFMR, even though the market might allow higher rates.
A Section 8 voucher does not cover the entire rent amount. Instead, it reimburses the landlord for the difference between the tenant's contribution and the SAFMR. Typically, the tenant is responsible for paying approximately 30% to 40% of their income towards rent. If we assume an average tenant income of around $2,000 per month, their portion would be roughly $600 to $800.
Utility allowances are also factored into the equation. These allowances vary but generally provide an additional amount to cover water, electricity, gas, and other utilities. For a two-bedroom apartment in ZIP 39532, the utility allowance might be around $150 to $200 per month, depending on the specifics of the case and the family size.
To illustrate, if a tenant's contribution is $700 and the utility allowance is $175, the total reimbursement to the landlord would be $1190. This means the landlord receives the tenant's $700 plus the utility allowance of $175, totaling $875. The remaining $315 is the gap between the SAFMR and the local market rent ($1,344 - $1,029).
In summary, landlords in ZIP 39532 can expect a reimbursement gap when renting a two-bedroom apartment through the Section 8 program. Given the SAFMR of $1190 and the local market rent of $1,344, there is a typical shortfall of about $315 per month. This economic reality should be carefully considered before entering into a Section 8 agreement.
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.