Location: Noxubee County, MS | Metro: Lowndes County, MS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
In ZIP code 39701, the economics of Section 8 housing can be broken down into several key components that directly impact landlords and small-portfolio investors. The SAFMR (Section 8 Area Median Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $880. This figure represents the maximum amount that the housing authority will pay on behalf of eligible tenants for such units.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,144. This is the average rent price for a two-bedroom apartment in the same area, based on current market conditions. For landlords, understanding the difference between these two figures is crucial, as it highlights the potential gap they might face when renting to Section 8 tenants.
A Section 8 voucher is designed to cover most of the rent, but not all. The tenant is responsible for paying a portion of the rent, which is typically 30% of their income. Additionally, there are utility allowances that vary based on the type of unit and location. In ZIP 39701, these allowances can range from $150 to $250 per month, depending on the specifics of the voucher and the tenant's needs.
To illustrate, if a tenant has an income that requires them to contribute $300 towards rent, and the utility allowance is $200, then the total contribution from the tenant and the utility allowance would be $500. Subtracting this from the SAFMR of $880 leaves the housing authority to pay approximately $380 towards the rent. However, since the market rent is $1,144, landlords would need to make up the remaining $764 from other sources, or accept a lower rental income.
This scenario presents a significant reimbursement gap for landlords, where the total rent received from the housing authority and the tenant falls short of the market rate. Specifically, for a two-bedroom apartment in ZIP 39701, the gap between the market rent and the total Section 8 reimbursement (including tenant contribution and utility allowance) is $264 per month. This gap must be carefully considered when deciding whether to participate in the Section 8 program, as it affects the overall profitability of the investment.
Landlords should also consider the benefits of reduced vacancy rates and guaranteed payments from the housing authority, even if the net income is lower than the market rent. These factors can balance out the economic impact of participating in Section 8.
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.