Location: Pike County, MS | Metro: Amite County, MS
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 | $760 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,080 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,080 | $166,541 | 0.65% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 39652 stands at $42,966, which places significant constraints on the financial capabilities of the average household. Given the market rate for rent at $800 (as per Census ACS), it becomes evident that many residents face challenges in affording housing without financial assistance. The Federal Market Rent (FMR) standard for the metro area in fiscal year 2026 is set at $970, indicating that even with a Section 8 voucher, the cost of renting remains above the typical household's budget.
To put this into perspective, let's consider the numbers. At a median income of $42,966, a household would have an annual disposable income of approximately $35,200 after accounting for a 20% tax rate. This translates to a monthly disposable income of around $2,933. If we assume that a household should spend no more than 30% of its income on housing, the maximum affordable rent would be roughly $880 per month. However, the actual market rate is already at $800, leaving little room for additional expenses such as utilities, insurance, and other necessities.
The fact that only 17.7% of the 7,259 population are renters suggests a relatively low demand for rental properties. For landlords, this means that competition could be fierce for the limited number of potential tenants. The affordability gap between the median income and the market rate, compounded by the higher FMR standard, could deter cash-paying tenants who might find it difficult to cover the costs.
Given these conditions, landlords considering their strategy should weigh the benefits of accepting Section 8 vouchers against the challenges of finding cash-paying tenants. While vouchers ensure a steady stream of rental income, they also come with regulatory compliance and administrative overhead. Cash-paying tenants, though harder to attract due to the high cost relative to income, offer greater flexibility and potentially higher rent rates, which could be advantageous if landlords can secure long-term leases.
The takeaway for landlords is clear: understanding the local economic landscape and the affordability gap is crucial. Accepting vouchers can provide a reliable tenant base, but it may also limit the ability to charge premium rents. Landlords should assess their property management capacity and the local rental market dynamics before deciding on a strategy. In ZIP 39652, where median incomes are relatively low and the rental market is competitive, a balanced approach that considers both voucher and cash-paying tenants could be the most effective way to maximize occupancy and rental income.
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.