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 | $970 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $261,291 | 0.58% | F |
| 4BR | $1,780 | $355,335 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 39565 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,120, while the Census American Community Survey (ACS) indicates a market rent of $1,109. This creates a gap of $11, or approximately 1%, favoring the FMR over the market rent.
The higher FMR compared to the market rent makes ZIP 39565 a prime location for landlords who wish to participate in the yield play associated with voucher tenants. Despite the relatively low percentage of renters at 9.0%, the difference between the FMR and the market rent means that landlords can receive a slightly higher rental income than what the open market offers. This scenario benefits landlords because it allows them to potentially charge a rent that is above the typical market rate without the risk of vacancy, as the government will subsidize the difference between the tenant's contribution and the FMR.
The median home value in ZIP 39565 stands at $270,592, indicating a moderate to high-value residential area. The median household income is $87,739, which suggests that the residents have a reasonable purchasing power but might still find it challenging to afford market rents without assistance. Therefore, the presence of Section 8 voucher holders can be particularly beneficial in ensuring steady cash flow for landlords, even when market conditions are tight.
In conclusion, the slight premium of FMR over market rent in ZIP 39565 presents an opportunity for landlords to maximize their yields through the participation in the Section 8 program. Given the specific context of the area, the financial stability provided by voucher tenants can offset the lower overall rental demand and ensure consistent returns on investment.
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.