Location: Lincoln County, MS | Metro: Jackson, 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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $77,908 | 1.17% | B |
| 3BR | $1,180 | $115,195 | 1.02% | B |
U.S. Census Bureau data (2024)
The real estate market in Monticello, Mississippi (ZIP 39654), presents a unique scenario for both landlords and small-portfolio investors. The median home value stands at $116,931, indicating a relatively affordable market. However, without specific data on the percentage of listings that have been reduced and the median days on market (DOM), it's challenging to pinpoint exact trends in pricing power. Typically, a high percentage of reduced listings coupled with an increasing DOM would suggest a buyer's market where pricing power is diminished. Conversely, low reductions and decreasing DOM would imply a seller's market with stronger pricing power.
In the rental sector, the Fair Market Rent (FMR) for ZIP 39654 is set at $900 for fiscal year 2024, which contrasts sharply with the current market rent of $567, based on Census ACS data. This gap suggests significant potential for rent increases, aligning with the FMR guidelines. Landlords can expect to see upward pressure on rental rates as the market adjusts to meet these standards. This dynamic benefits those who are looking to invest in properties for long-term rental income, as it provides a clear path for increasing cash flow through higher rents.
For long-hold investors, the setup in Monticello implies a cautious approach to the appreciation thesis. Given the median home value and the lack of detailed data on listing reductions and DOM, it's reasonable to assume that while there may be some appreciation over the next 12-24 months, it will likely be modest. The market appears stable but not booming, suggesting that capital gains might not be the primary driver of returns for property owners. Instead, the focus should be on steady rental income, with the potential for gradual rent increases to enhance overall investment performance.
The combination of an affordable median home value and the disparity between FMR and current market rents creates a compelling environment for investors focused on rental yields. By positioning themselves to charge closer to the FMR, they can improve their rental income, making this area particularly attractive for those seeking consistent, long-term returns rather than rapid appreciation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.