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 | $830 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $183,278 | 0.63% | D |
| 3BR | $1,490 | $251,720 | 0.59% | F |
| 4BR | $1,690 | $344,942 | 0.49% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 39556, located in Kiln, Mississippi, can be determined by analyzing its yield and stability metrics. On the yield axis, the Fair Market Rent (FMR) for a unit in this ZIP code is set at $1200 for fiscal year 2024. This FMR is significantly higher than the local market rent of $983, indicating that properties receiving Section 8 assistance can command a premium over typical market rates. The average home value in the area stands at $233,967, which suggests that the rental market is somewhat insulated from the overall housing market, given the discrepancy between the FMR and the market rent.
Moving to the stability axis, the ZIP code has a relatively low percentage of renters at 11.8%. This figure implies that the majority of residents in Kiln own their homes, which could make the rental market less predictable and potentially riskier for landlords. Additionally, the median household income in the area is $60,739, providing some insight into the financial health of potential tenants. However, the lack of data on the number of days on the market (DOM) for rentals means there's an incomplete picture of how quickly units are typically filled or turned over, which is crucial for assessing the stability of cash flow.
Given these figures, ZIP 39556 appears to be a market with moderate potential for high yield due to the favorable FMR compared to the local market rent. However, it falls short of being a high-yield/low-stability "flip-style" market because the low renter percentage and limited DOM data suggest a degree of unpredictability in the rental market. It also doesn't fully align with the characteristics of a steady-cashflow zone, as the income levels are modest and the rental market size is small.
In conclusion, ZIP 39556 presents an opportunity that lies somewhere between a high-yield speculative market and a stable cash-flow market. The key drivers are the substantial difference between the FMR and market rent, which allows for higher returns on investment, balanced against the smaller rental market and potentially slower turnover rates. Landlords and small-portfolio investors should carefully consider these factors when evaluating the risk and reward profile of this ZIP code.
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.