Location: Lowndes County, MS | Metro: Lowndes 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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $195,142 | 0.64% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 39702, located in Lowndes County, Mississippi, reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rents. For fiscal year 2026, HUD has established an FMR of $880 for the metro area, while the Zillow Observed Rent Index (ZORI) indicates that the average market rent is $1,317. This difference suggests that voucher tenants will only cashflow at the FMR level if they occupy premium units, which are typically priced below the average market rate.
To further understand the investment potential, consider the median home value of $173,302 in the area. The rent-to-price ratio can be calculated by dividing the average market rent ($1,317) by the median home value ($173,302), resulting in a ratio of approximately 0.76%. This low ratio implies that rental income is relatively low compared to property values, which could affect the overall profitability of rental investments.
The dynamics of the local real estate market also play a role in investment decisions. With a median Days on Market (DOM) of 40 days and a price-cut share of just 0.2%, it appears that the market is stable and conducive to quick sales. However, these metrics do not directly impact the rent-vs-buy decision for tenants but do suggest a healthy real estate market.
The strongest investor angle in ZIP 39702 is likely to be stability. Given the low price-cut share and quick DOM, investors can expect a consistent and predictable market environment, which is particularly valuable when managing properties for Section 8 tenants. While cashflow might be marginal due to the discrepancy between FMR and market rents, the stability of the market ensures long-term viability and minimizes risks associated with rapid changes in housing demand or supply.
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.