Location: Pascagoula, MS | Metro: Pascagoula, 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 | $840 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $106,052 | 0.91% | C |
| 3BR | $1,320 | $151,520 | 0.87% | C |
| 4BR | $1,590 | $203,695 | 0.78% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 39567 in Pascagoula, MS, reveals distinct gross yields based on the Federal Market Rent (FMR) and the market rent. For a two-bedroom unit, the annualized FMR for fiscal year 2024 is set at $980, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,350 per month. Given a median home value of $147,685, these figures translate into significant gross yields.
Using the FMR of $980 per month, the annual rental income would be $11,760. This results in a gross yield of approximately 7.97% when calculated against the median home value. The formula used here is simple: Gross Yield = Annual Rental Income / Property Value. On the other hand, applying the market rent of $1,350 per month, the annual rental income jumps to $16,200, leading to a gross yield of about 10.96%.
The higher gross yield derived from the market rent scenario appears more realistic given the current economic conditions and rental market dynamics in Pascagoula. With a renter density of 32.3%, it's evident that there is a substantial portion of the population seeking rental accommodations, which could support higher rents. Moreover, the lack of specific days on market (DOM) data suggests that properties in this area might sell quickly, indicating strong demand.
However, landlords must consider the trade-offs between these two scenarios. While the market rent scenario offers a more attractive gross yield, it also comes with the risk of higher vacancy rates due to the limited availability of Section 8 vouchers compared to the broader rental market. In contrast, the FMR scenario provides a guaranteed income stream through government subsidies, albeit at a lower gross yield.
To summarize, the gross yield for a two-bedroom unit under the Section 8 program in ZIP 39567 is approximately 7.97%, while the market rent scenario implies a gross yield of around 10.96%. Investors should weigh these figures against the local rental market conditions and their investment objectives.
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.