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 | $920 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $157,875 | 0.82% | C |
| 3BR | $1,660 | $191,596 | 0.87% | C |
| 4BR | $1,880 | $316,777 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 39540, located in Diberville, MS, presents an interesting balance between yield and stability for real estate investors.
On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,250, which is slightly above the market rent of $1,249. Given the median home value of $223,066, the rental income can be seen as modest but potentially competitive if the investor targets tenants who qualify for Section 8 assistance. The FMR being marginally higher than the market rent suggests that there is a slight edge in rental income potential, though it's not significantly high to classify as a high-yield market.
Regarding stability, ZIP 39540 has a 41.0% rate of renters, indicating a moderate level of demand for rental properties. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties might turn over, but the median household income of $66,016 provides some insight into the economic health of the area. This figure, while not exceptionally high, does suggest that tenants have a reasonable capacity to pay rent consistently, contributing to a stable cash flow environment.
In conclusion, ZIP 39540 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The slightly elevated FMR offers a modest advantage in rental income, while the moderate renter population and decent median income support a stable investment climate. However, the absence of DOM data means that turnover risks remain unclear, and investors should consider this when evaluating the potential for consistent returns.
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.