Location: Lincoln County, MS | Metro: Amite County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 39664 might have several concerns regarding the feasibility of renting properties under the Section 8 program. Let's address these points directly using the available data.
Will FMR $900 (metro FY 2026) cover the mortgage on a $183,562 home?
The Fair Market Rent (FMR) for ZIP 39664 is set at $900 for the fiscal year 2026. To determine if this amount can cover the mortgage on a home priced at $183,562, we need to consider the interest rates and loan terms. Assuming a fixed-rate mortgage at an average rate of 4% over a 30-year term, the monthly mortgage payment for such a home would be approximately $895. This means that the FMR of $900 will indeed cover the mortgage, with a slight surplus that could help with property taxes, insurance, and maintenance costs. However, it's important to note that if interest rates rise significantly above 4%, the mortgage payment would increase, potentially exceeding the FMR.
Is there enough renter demand at 19.4%?
The rental demand in ZIP 39664 stands at 19.4%. While this percentage indicates a moderate level of demand, it's crucial to compare it against broader regional trends. A lower demand percentage suggests fewer renters relative to homeowners, which could make it harder to fill vacancies. However, the actual number of potential renters is also a critical factor. Without the total population figure, it's challenging to gauge the absolute size of the rental market. Still, the presence of any demand is positive, especially when combined with the availability of Section 8 vouchers.
Will vouchers keep pace with $677 market rents?
The current market rent in ZIP 39664 is $677, which is below the FMR of $900. The key question here is whether the voucher amounts will adjust to keep up with any future increases in market rents. Historically, voucher amounts have increased annually but not always at the same rate as inflation or local rent hikes. Given that the current voucher amount is close to the market rent, landlords should expect some financial cushion. Yet, for long-term planning, it's essential to monitor both the FMR adjustments and the specific changes in voucher amounts. If the gap between market rents and voucher amounts widens, it could affect profitability.
In summary, while the FMR of $900 covers the mortgage on a $183,562 home, the 19.4% rental demand suggests a moderately competitive market. Lastly, the current alignment between voucher amounts and market rents of $677 offers short-term security, though ongoing vigilance is necessary to ensure long-term sustainability.
Data Sources: FMR data from HUD (2027). 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.