Location: Winston County, MS | Metro: Choctaw 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 | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $110,563 | 0.91% | C |
| 3BR | $1,310 | $149,884 | 0.87% | C |
| 4BR | $1,330 | $238,748 | 0.56% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 39735 in Ackerman, MS, are significant. First, tenant turnover can be a substantial issue, with the market rent at $616 being considerably lower than the Fair Market Rent (FMR) of $1,000 for the metro area in fiscal year 2026. This discrepancy indicates that tenants might struggle to afford the rent, leading to frequent turnover. Additionally, the vacancy exposure is high due to the lack of data on days on market (DOM), suggesting that it could take longer than expected to fill vacancies.
The deferred maintenance exposure is another critical factor. With a typical home value of $136,773 and a median income of $51,820, many residents might not have the financial resources to maintain their homes properly. This could result in higher repair costs and more maintenance requests for landlords, which can be burdensome and financially draining.
However, these risks must be weighed against the high renter share in the area, which stands at 30.5%. High renter density often translates into greater demand for rental properties, including those that accept Section 8 vouchers. The combination of a relatively low market rent and a significant number of renters could mean that there is a steady pool of voucher holders looking for housing, potentially reducing the risk of prolonged vacancies.
In conclusion, despite the challenges posed by tenant turnover and deferred maintenance, the high renter share in ZIP 39735 makes it a moderate risk for a first-time Section 8 landlord. While there are clear obstacles, the demand for affordable housing suggests a reasonable chance of finding stable tenants who can benefit from the voucher program.
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.