Location: Walthall County, MS | Metro: Marion 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 | $770 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,090 |
| 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 | $1,090 | $185,836 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 39667 reveals interesting insights into potential investment opportunities for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1,010 annually (for FY 2026), the implied gross yield can be calculated. This annualized figure translates to a monthly rental income of approximately $84.17.
To derive the gross yield, we consider the median home value in ZIP 39667, which stands at $150,794. With an annual rental income of $12,120 ($1,010 x 12 months), the gross yield is roughly 8.04%. This calculation assumes that the property can be rented out at the FMR rate, which is a benchmark set by the government for determining eligibility for housing assistance programs.
However, it's important to note that the market rent for a similar 2-bedroom apartment in ZIP 39667 is significantly lower, at $686 annually (based on Census ACS data). This equates to a monthly rental income of about $57.17. Using this figure, the annual rental income would be $6,860, resulting in a gross yield of approximately 4.55%.
Given the 20.4% renter density in ZIP 39667, it is evident that a significant portion of the population is likely to seek rental housing. However, the lack of Days on Market (DOM) data suggests that there might be some variability in how quickly properties can be leased. Despite this, the lower market rent scenario seems more realistic for most properties in the area.
The disparity between the FMR and market rent highlights the potential benefits of participating in the Section 8 program. While the higher FMR rate of $1,010 per month offers a more attractive gross yield of 8.04%, the actual market conditions indicate that landlords might struggle to achieve such high rents without the support of the housing voucher program. Therefore, for most investments, the 4.55% gross yield based on market rent is a more practical expectation.
In conclusion, while the Section 8 program provides a higher rental rate, the market reality suggests that landlords should plan for a gross yield closer to 4.55%. This analysis should help inform investment decisions in ZIP 39667, ensuring that expectations align with actual market conditions.
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.