Section 8 Fair Market Rent (FMR) for ZIP 39564 - 2027

Investment Score for ZIP 39564

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,160
1 Bedroom	$1,170
2 Bedrooms	$1,330
3 Bedrooms	$1,820
4 Bedrooms	$2,130
5 Bedrooms	$2,471
6 Bedrooms	$2,768
7 Bedrooms	$2,989
8 Bedrooms	$3,138

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,330	$232,328	0.57%	F
3BR	$1,820	$244,695	0.74%	D
4BR	$2,130	$327,940	0.65%	D
5BR	$2,471	$457,533	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 39564 (Ocean Springs, MS) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 39564 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1270 per month. This figure represents 19.4% of the median household income in Ocean Springs, which stands at $78,596. However, it's important to note that the actual rents in the area can be significantly higher. The Zillow median price for a two-bedroom home in Ocean Springs is $230,800, indicating that rental prices are likely to be above the FMR. The price-to-FMR ratio for a two-bedroom unit is 15.1x, meaning that the average rent is approximately $15.1 times the FMR. This suggests that many landlords might not accept Section 8 vouchers due to the lower rent ceilings imposed by the program. The constraints for voucher holders are evident when comparing the FMR to the actual market rents. For instance, if a landlord charges $1500 for a two-bedroom unit, a voucher holder would only be able to pay up to $1270, leaving a significant gap that must be covered by the tenant themselves. This makes it challenging for voucher holders to find suitable housing in Ocean Springs, especially since the occupancy rate is high at 94.4%, indicating limited availability. #### Affordability & Renter Profile In Ocean Springs, 27.8% of households are renters, suggesting a moderate demand for rental properties. Given the high occupancy rate and the relatively affluent population with a median household income of $78,596, the rental market is likely tight. This means that landlords have a competitive advantage and can charge higher rents, making it difficult for low-income households to find affordable housing options. The affordability of housing for voucher holders is particularly strained. With the FMR for a two-bedroom unit being $1270, which is only 19.4% of the median income, it's clear that the majority of residents can afford to pay more than what the voucher program allows. Therefore, the market is not oversupplied but rather balanced or slightly tight, with higher-end rentals catering to the local population's income levels. #### Investor Angle From an investor perspective, the ZIP code 39564 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1270, which is well below the average market rent. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates and the cost of acquisition. Given the Zillow median price of $230,800 for a two-bedroom property, the average monthly mortgage payment on a 30-year fixed-rate loan at 4.5% interest would be around $1130. Adding typical expenses such as property taxes, insurance, maintenance, and management fees, the total monthly cost could easily exceed $1270. This means that landlords who accept Section 8 vouchers might face financial pressure unless they can offset these costs through other means, such as government subsidies or tax benefits. The investment grade for this ZIP code would be considered moderate. While there is a strong demand for rental properties, the tight market and higher-than-average rents suggest that finding tenants willing to pay only the FMR could be challenging. Investors should carefully evaluate their risk tolerance and the potential for long-term appreciation before entering this market. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are closer to the FMR range. For example, a one-bedroom unit with an FMR of $1130 might be more financially viable for Section 8 tenants. This would allow landlords to avoid the financial strain of accepting vouchers on higher-priced units. 2. **Consider Government Subsidies**: Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers might benefit from additional government subsidies or tax incentives. These programs can help bridge the gap between the FMR and the actual market rent, making the investment more attractive. 3. **Evaluate Long-Term Appreciation Potential**: Despite the immediate financial challenges, Ocean Springs has a strong economic foundation and a growing population. Investors should consider the long-term appreciation potential of properties in this ZIP code. If the value of the property increases over time, the initial financial pressures might be offset by future gains. #### Bottom Line For Section 8-focused investors, the ZIP code 39564 presents a mixed picture. While there is a significant demand for rental properties, the high market rents and tight occupancy rates make it challenging to achieve positive cash flow solely based on the FMR. Therefore, the recommendation is to **Skip** this market unless investors can leverage additional subsidies or are willing to take on the financial risks associated with lower rents. Investors should also consider diversifying their portfolio to include areas with lower price-to-FMR ratios to balance out the financial pressures. --- This analysis provides a detailed look into the dynamics of the rental market in Ocean Springs, MS, focusing specifically on how Section 8 vouchers fit into the broader context of housing affordability and investment potential.

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.