Location: Pike County, MS | Metro: Pike County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
The potential risks for investing in Section 8 properties in ZIP code 39649 in Unknown, MS, are significant and should be carefully considered before proceeding. Tenant turnover is a critical issue, with the market rent being unknown compared to the $990 Fair Market Rent (FMR) for the fiscal year 2026 in the metro area. High turnover can lead to increased costs for screening, advertising, and maintenance, reducing profitability.
Vacancy exposure is another concern. With an unknown number of days on the market (DOM), there's uncertainty regarding how long it might take to fill vacancies. This can result in lost rental income, which is particularly problematic when relying on Section 8 vouchers that have fixed payment amounts.
Deferred maintenance is also a risk factor. The typical home value and median income in the area are both unknown, making it difficult to assess the financial capacity of residents to maintain homes adequately. Poor maintenance can lead to costly repairs and decreased property values over time.
However, these risks must be weighed against the high concentration of renters in the area. Despite the lack of specific data on the percentage of renter share, high renter density generally correlates with higher demand for housing vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants who are committed to paying their rent through the voucher program.
In conclusion, the investment in Section 8 properties in ZIP 39649 presents a moderate risk for a first-time Section 8 landlord. While there are significant uncertainties around market rents, vacancy durations, and maintenance capabilities, the potential for stable occupancy due to high voucher demand offers some mitigation against these risks.
Data Sources: FMR data from HUD (2027).
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.