Section 8 Fair Market Rent (FMR) for ZIP 39759 - 2027

Investment Score for ZIP 39759

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$930
1 Bedroom	$970
2 Bedrooms	$1,060
3 Bedrooms	$1,390
4 Bedrooms	$1,390
5 Bedrooms	$1,612
6 Bedrooms	$1,805
7 Bedrooms	$1,949
8 Bedrooms	$2,046

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,060	$237,526	0.45%	F
3BR	$1,390	$304,465	0.46%	F
4BR	$1,390	$413,328	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 39759 (Starkville, MS) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 39759, as per the 2026 data, is set at $1010 for a two-bedroom unit. This represents 26.1% of the median household income in the area, which is $46,398. However, the actual rental rates in Starkville are significantly higher. According to Zillow, the median price for a two-bedroom unit is $235,008, which translates to a monthly rent of approximately $1958 when considering typical mortgage payments and property taxes. The price-to-FMR ratio is 19.4x, indicating that the actual rental rates are nearly 19 times the FMR. This stark difference means that Section 8 voucher holders face significant constraints in finding affordable housing. They can only afford units priced at or below the FMR, which is far lower than the market rate. #### Affordability & Renter Profile ZIP code 39759 has a high percentage of renters at 54.2%, suggesting a strong demand for rental properties. The occupancy rate stands at 85.5%, indicating that the market is relatively tight but not entirely saturated. Given the median household income of $46,398, it is clear that many residents rely on government assistance like Section 8 vouchers to afford housing. The affordability gap is particularly pronounced for two-bedroom units, where the FMR is only $1010 compared to the market rate of around $1958. This suggests that the majority of renters are likely to be low-income individuals who struggle to find suitable housing without financial aid. #### Investor Angle From an investor perspective, the ZIP code 39759 presents a challenging environment due to the high price-to-FMR ratio. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical costs associated with owning and renting out a property. Assuming a two-bedroom unit costs around $235,008, the monthly mortgage payment would be approximately $1179 based on a 30-year fixed-rate mortgage at 5%. Adding property taxes and maintenance costs, the total monthly expenses could easily exceed the FMR of $1010. Therefore, it is unlikely that an investor would achieve positive cash flow by renting at the FMR. In terms of investment grade, the high price-to-FMR ratio and the tight market suggest that the investment risk is elevated. Investors would need to carefully evaluate the potential for long-term appreciation and the stability of the local economy before making any decisions. #### Specific Actionable Insights 1. **Target Affordable Housing**: Given the high price-to-FMR ratio, investors should focus on developing or acquiring affordable housing units that cater specifically to low-income renters. This could involve building or renovating properties that can be rented out at or near the FMR levels. For example, a two-bedroom unit priced at $1010 would be attractive to Section 8 voucher holders. 2. **Consider Government Subsidies**: Investors might want to explore opportunities for government subsidies or partnerships that can help bridge the gap between the FMR and market rates. Programs such as Low-Income Housing Tax Credits (LIHTC) can provide financial incentives for developing affordable housing. 3. **Evaluate Long-Term Trends**: While the current market dynamics make it difficult to achieve positive cash flow at FMR, investors should also consider long-term trends. If the local economy improves or if there is a significant increase in the number of Section 8 voucher holders, the demand for affordable housing could rise, potentially improving investment returns. #### Bottom Line Given the high price-to-FMR ratio and the tight market conditions, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they can secure government subsidies or develop properties specifically designed to meet the needs of low-income renters. The current market rates are too high for most Section 8 voucher holders, and achieving positive cash flow at the FMR is unlikely. Investors should look for areas with a lower price-to-FMR ratio or where the local economy shows signs of improvement that could lead to better investment outcomes.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.