Section 8 Fair Market Rent (FMR) for ZIP 39710 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 cap-rate scenario for ZIP code 39710 in Mississippi reveals several key points that landlords and small-portfolio investors should consider.

Firstly, the Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at an annualized rate of $880. This figure serves as the basis for calculating the potential income from a Section 8 rental property in this ZIP code. However, without a specific median home value or market rent data, it's challenging to provide a precise gross yield. The lack of these metrics means we cannot directly compare the FMR to typical market rents or property values, which would normally help us assess the attractiveness of this investment opportunity.

To illustrate the implications, let’s assume a hypothetical median home value. If the median home value were, for example, $150,000, the implied gross yield based on the annualized FMR would be approximately 5.87%. This is calculated by taking the annual FMR ($880) and dividing it by the median home value ($150,000). However, since the actual median home value is not provided, this calculation is illustrative only and does not reflect the real situation in ZIP 39710.

The absence of market rent data further complicates the analysis. In a scenario where the market rent matches the FMR, the gross yield would be the same as our illustrative calculation. But if the market rent exceeds the FMR, the gross yield would be lower when considering Section 8 properties. Conversely, if the market rent is below the FMR, Section 8 could offer a higher gross yield.

Given the incomplete data—specifically the lack of median home value, renter density percentage, and days on market (DOM)—the second scenario is more realistic. Investors should focus on understanding the local rental market dynamics, including how long properties typically stay on the market and the proportion of renters versus homeowners. These factors can significantly influence the feasibility and profitability of Section 8 investments.

In conclusion, while the FMR provides a baseline for expected rental income under Section 8, the true gross yield and investment viability in ZIP 39710 cannot be fully assessed without additional local market data. Landlords and investors must conduct thorough due diligence to determine the most accurate and relevant figures for their investment decisions.

Data Sources: FMR data from HUD (2027).

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.