© 2018 Fannie Mae. Trademarks of Fannie Mae. 11.5.2018 1 of 8

Multifamily Market Commentary – July 2018

Multifamily Challenges and Opportunities in the Lower 

Mississippi Delta

Perhaps best known as the birthplace of B.B. King, Muddy Waters, and other great American Bluesmen, the Lower 

Mississippi Delta region has many counties located in rural areas. Collectively, counties in the Lower Mississippi Delta 

region have faced many societal, demographic, and economic challenges over the years. However, the region is not simply 

defined by its challenges. There are also some areas of population and economic improvement. As a result, there is

potential for future expansion and providing even greater 

liquidity to the multifamily market. 

Defining the Lower Mississippi Delta

The Lower Mississippi Delta region has traditionally been 

defined as consisting of certain counties near the 

Mississippi River in the states of Illinois, Missouri, 

Arkansas, Louisiana, Mississippi, Tennessee, and 

Kentucky. Under the Duty to Serve regulations of the 2008 

Housing and Economic Recovery Act, which identify the 

Lower Mississippi as a high-needs rural region, certain 

rural census tracts in Alabama are also included, as shown 

in the map to the right.

Lower Mississippi Delta is Largely Rural

The Lower Mississippi Delta region has an estimated 

population of 9.6 million, or just over 3 percent of the 

nation’s population. Most of the region’s residents live in 

rural areas.

In fact, an estimated 5 million residents, just over half of 

all Lower Mississippi Delta residents, live in rural census 

tracts. This is more than double the rate of population in 

rural areas for the United States as a whole: 52 percent 

of households in the Delta region live in rural areas 

compared to 23 percent for the U.S. overall.

The Population is Older

The average age of residents in the Lower Mississippi 

Delta region is slightly higher than that of the U.S. as a 

whole. In rural areas it is even higher. The average age 

of residents in rural census tracts is 39.9, about 2.2 

years older than the U.S. average.

Limited Demographic Diversity 

As seen in the charts on the next page, the majority of 

residents in the Lower Mississippi Delta region are 

identified as being non-Hispanic white. The Hispanic 

white population is just 2 percent. In contrast, African 

American households are an important demographic 

representation of the region since their share is more than twice the national average: African American households 

represent 32 percent of all households in the Lower Mississippi Delta, compared to just 13 percent for the U.S. as a whole.

Rural LMD LMD U.S.

Population 5.0 M 9.6 M 314.0 M

Population Growth -1.3% 1.8% 4.8%

Population in Rural 100% 52% 23%

Poverty Rate 23% 21% 15%

Average Age 39.9 38.0 37.7

Homeownership Share 71% 66% 64%

Renter Share 29% 34% 36%

Lower Mississippi Delta Quick Facts

Source: Fannie Mae tabulations of 2016 American Community 

Survey (ACS) 5 year estimates 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 11.5.2018 2 of 8

Despite the increase in population in the Lower Mississippi Delta, it continues to trail that of the U.S. as a whole. From 

2010-2016, the population of the region has grown by only 1.8 percent, compared to 4.8 percent for the nation. Rural 

tracts in the Lower Mississippi Delta face even more severe demographic challenges as they lost 1.3 percent of the region’s 

total population over the same period, likely due to households seeking better economic opportunities elsewhere.

Occupational Challenges Persist...

Households may seek opportunities elsewhere as fewer residents are able to get jobs in the Delta. The unemployment rates

in both the overall and rural Lower Mississippi Delta regions are more than 2 percent higher than the national average due 

to fewer job opportunities for residents. In addition, the share of households in jobs outside of the better-paying 

professional services category is higher than the national average, as illustrated in the charts below. 

For example, the share of households in jobs in manufacturing, transportation, and logistics is estimated to be 19 percent, 

about 7 percent higher than the U.S. as a whole. The share of households in the rural Lower Mississippi Delta working in 

the natural resources, construction, and maintenance category is about 13 percent, which is about 4 percent higher than 

the national average. This category includes farmers, fishermen, and those working in forestry services, none of which are 

typically high-paying occupations. 

... As Well as Economic Ones

Since a larger share of households in the Lower Mississippi Delta, particularly in its rural tracts, tend to work in lowerpaying occupations such as farming, the region suffers from lower than average household incomes. Indeed, the median 

household income in the Lower Mississippi Delta is about $11,000 lower than the national average. And the median 

household income is even lower in the region’s rural tracts: At just $38,600, the median household income in the region’s 

rural tracts is almost $17,000 per year lower than the $55,300 recorded for the U.S. as a whole. As a result, the poverty 

rate in the overall Lower Mississippi Delta region is 21 percent compared with the national average of 15 percent. 

 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 11.5.2018 3 of 8

The Poverty Rate is Elevated

While the poverty rate is elevated for the entire Lower 

Mississippi Delta region, it rises even higher to 23 

percent in its rural census tracts, representing nearly 

one-quarter of the region’s households.

A large portion of the Lower Mississippi Delta’s 

households face economic challenges, and renters fare 

slightly worse. Overall, renters in the Lower Mississippi 

Delta earn $28,800 in median household income 

annually compared with median renter household 

income of $35,200 for the U.S. as a whole.

Renters in the region’s rural census tracts earn even 

less, with a median household income of about 

$24,200 annually, which is $11,000 less annually than 

income for renters nationwide and less than half of the 

national household income. 

A Majority of Renters are Cost Burdened

With so many residents living in rural areas, one might 

expect housing to be affordable. However, low incomes 

lead to higher cost burdens for renters. An estimated 52 

percent of renter households in the Lower Mississippi 

Delta overall are cost burdened, spending over 30 

percent of income on rent and utilities. Over a quarter of 

renters in this area, 27 percent, are severely cost 

burdened, spending over half of income on rent and 

utilities. This is one percentage point higher than the 

U.S. as a whole.

Renters Tend to Favor Single-Family Homes

In the rural Lower Mississippi Delta tracts, about 69 

percent of renter households occupy single-family 

homes. In addition, renters in the rural census tracts of 

the Delta region are more likely to rent manufactured 

housing than to rent typical multifamily structures. In 

fact, 16 percent of renter households in the rural tracts 

of the Delta rent manufactured homes compared to 14 

percent renting typical apartments units. However, the 

share of renters in apartments in the Lower Mississippi 

Delta region overall is higher, at 26 percent of all 

renter households.

Rural LMD LMD U.S.

Poverty Rate 23% 21% 15%

Median Household 

Income $38.6 $43.9 $55.3

Median Renter 

Household Income $24.2 $28.8 $35.2

Rural LMD LMD U.S.

Single Family 69% 64% 53%

Manufactured Housing 16% 10% 4%

Multifamily 14% 26% 42%

Severe Cost Burden 26% 27% 26%

Source: Fannie Mae Tabulations of 2016 ACS 5 year estimates 

Lower Mississippi Delta Incomes

Lower Mississippi Delta Renter Households

Source: Fannie Mae Tabulations of 2016 ACS 5 year estimates 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 11.5.2018 4 of 8

Rural Lower Mississippi Delta Shows Variation in Population Growth

Rural tracts in the Lower Mississippi Delta face many challenges, but there is great variation among counties. In fact, there 

are some rural counties that are adding to, rather than losing from, their total populations. 

For instance, the fastest growing county by population since 2010 for the Lower Mississippi Delta rural census tracts is 

Russell County, Alabama, which grew by 32 percent over the past six years. Russell County is close to Fort Benning, a 

military base, which benefitted from the last round of the U.S. Base Realignment and Closure – or BRAC – changes.

Most Faster-Growing Counties in Louisiana

Most of the faster-growing Lower Mississippi Delta rural 

tracts are located in Louisiana and in areas that are reliant 

on the energy sector as a key economic driver. This sector 

can be volatile as evidenced by the recent decline in oil 

prices, resulting in a big pullback in drilling over the past 

several years. 

Fortunately, the energy sector has a brighter long-term

outlook, which should help boost local economic conditions 

in some of the Lower Mississippi Delta rural areas in the 

future.

Proximity to Colleges Helps

Ties to educational institutions appear to have had a 

significant influence on growth in some of the Lower 

Mississippi Delta rural areas. For instance, Lafayette 

County, Mississippi, which experienced cumulative 

population growth of 15 percent from 2010 to 2016 in its 

rural tracts, is home to the University of Mississippi. In 

Louisiana, East Baton Rouge Parish, which saw population 

growth of 11 percent over the same period, is home to 

Louisiana State University, a large research university and 

one of the parish’s key economic drivers.

Some Rural Areas Are Supported by Larger Metro

Areas

Another key driver of growth for some of the Lower 

Mississippi Delta’s rural areas is their proximity to a larger 

and growing metro area. For example, Livingston, Louisiana, is adjacent to Baton Rouge, the state capital. Livingston’s 

proximity to the state’s capital in tandem with the energy sector as a key economic driver has allowed the county to grow 

by 11 percent over the past six years due to an influx of new residents looking for more affordable housing and a better 

quality of life. 

In fact, the county that experienced the fastest job growth in rural census tracts was Ascension Parish, part of the Baton 

Rouge metro area, which has enjoyed cumulative 12.2 percent employment growth rate over the past six years.

Other Rural Areas Have Diverse Economies

Ouachita Parish/Monroe, Louisiana is another example of a faster-growing area. Located near the Arkansas border, it is 

perhaps best known as the location for the “Duck Dynasty” reality television show. It has a fairly diverse economy, 

including healthcare, financial services, and telecommunications. National telecommunications company CenturyLink,

which is in the Standard and Poor’s (S&P) 500 Index, is headquartered there. 

As seen in the map on the next page, most of the Lower Mississippi Delta counties with high population growth over the 

past few years are expected to continue having solid household formations over the next five years, according to Census 

Bureau projections. These households will need a place to call home, some of which will include multifamily rental 

housing.
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Projected Household Growth by Lower Delta County (2018-2023)

Source: U.S. Census Bureau 

Household Projections per Tableau
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Rural Lower Mississippi Delta Has Apartments!

According to CoStar, there are just under 1,200 

properties consisting of 5-50 units in the rural areas of 

the Lower Mississippi Delta, as seen in the map to the 

right. These properties contain nearly 30,000 units for 

an average of about 25 multifamily units per property.

These properties appear to have higher vacancy rates 

than properties with 5-50 units nationally. As of June 

2018, the vacancy rate for these properties was 6.2 

percent compared to a national vacancy rate of about 4.4

percent. Rents for these rural Lower Mississippi Delta 

properties are about $560 per month, which is 

significantly lower than the national average of nearly 

$1,100 per month for properties with 5-50 units. 

County with Most Units in Missouri

According to data from CoStar, the county in the Lower 

Mississippi Delta with the greatest number of 

multifamily units is St. Francois, Missouri, with just 

under 1,000 units. While St. Francois is just 70 miles 

from St. Louis, its economy is not dependent upon the 

larger metro area. St. Francois’ economy is primarily 

driven by mining and manufacturing. 

The counties with the second and third highest counts of 

multifamily properties are Baxter and White counties in 

Arkansas with just under 750 units each. Other counties 

with significant numbers of multifamily units include 

Lincoln Parish, Louisiana, with just under 700 units and 

home to Grambling State University and Christian 

County in Kentucky, located near Fort Campbell, with 

just under 650 apartments. Many of these counties 

were also among the top areas for lending activity in 

2017 and/or 2016.

Multifamily Demand Steady 

Demand for multifamily properties in the rural 

census tracts of the Lower Mississippi Delta 

appears stable, as seen in the table to the right. 

The vacancy rates in St. Francois and Baxter 

counties, as well as in Lincoln Parish, are all under 

5.7 percent. Rent growth has been steady as well. 

Year-over-year rent growth for Baxter County and 

Lincoln Parish was 1.8 percent as of June 2018, 

according to data from CoStar. Even so, this rent 

growth was still below the 2.6 percent rent growth recorded nationally for properties with 5-50 units.

The county with the highest rent growth year over year was Ouachita Parish, Louisiana, with 4.8 percent growth. Among 

other rural Lower Mississippi Delta counties with average rent growth that met or even exceeded the national average 

were White County, Arkansas, with 2.8 percent rent growth and Dyer County, Tennessee, with 4.3 percent growth.

County Units Vacancy Rent

(Monthly)

Rent Growth

(Annual)

St. Francois, 

MO

1,000 5.6% $515 1.4%

Baxter, AR 750 4.4% $510 1.8%

Lincoln 

Parrish, LA 700 5.1% $685 1.8%

Properties with 5-50 Units in 

Select Rural Lower Mississippi Delta Counties

Source: CoStar, as of June 2018
© 2018 Fannie Mae. Trademarks of Fannie Mae. 11.5.2018 7 of 8

Rural Lower Mississippi Delta Lending Characteristics

Availability of multifamily lending 

data is limited in the Lower 

Mississippi Delta rural areas since 

many small lenders and community 

banks are not required to report data 

under the Home Mortgage Disclosure 

Act (HMDA). Based on the most 

recent available HMDA data, lending 

trends in the Lower Mississippi Delta 

rural tracts appear to be limited and 

therefore slightly volatile. As shown 

in the adjacent chart, 2017 

multifamily lending volume totaled 

$192.5 million on 207 loans, with an 

average loan size of about $930,000. 

This was a significant decline from 

the 2016 lending volume of $271.6 

million on 193 loans with an average 

loan balance of $1.4 million. 

Although it appears that there has been an increase in sales transactions, refinances represented a significant share of 

lending activity. In 2017, loans for purchase totaled $98.5 million, but refinances of multifamily properties were not too 

far behind at an estimated $77.4 million. And while loan origination volumes have not increased, the number of loans 

have, which may indicate that property values are not rising significantly.

A Limited Number of Multifamily Lenders in Rural Tracts

As shown in the table below, lenders originating multifamily loans in rural areas of the Lower Mississippi Delta tend to be 

smaller, and top lenders vary greatly from year to year. The only lender that appears among the top five in both 2017 and 

2016 was First State Community Bank. Most lenders originated small multifamily loan balances well under $1.5 million.

Top Counties for Multifamily 

Lending in Rural Tracts

Multifamily lending appeared to 

take place consistently in only 

two counties over the past two 

years as shown in the adjacent 

table. One top county was 

Lincoln Parish, Louisiana, which, 

among other things, is home to 

Grambling State University, a 

historically black, public, 

coeducational university. The 

other top county for lending was 

St. Francois County, Missouri,

which has the highest number of 

apartments in rural census tracts 

of any rural county in the Lower 

Mississippi Delta, according to 

CoStar.

Many Reasons to Finance 

Small Multifamily 

Origination Volume in Rural Lower Mississippi Delta

Lower Mississippi Delta Multifamily Lending in Rural Areas
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Small multifamily buildings can be an important source of affordable housing. For that reason, in its regulation 

implementing the Duty to Serve regulations, the Federal Housing Finance Agency (FHFA) provides credit to Fannie Mae 

and Freddie Mac for financing small multifamily housing in the affordable housing preservation market as well as the 

rural housing market if the housing serves families of moderate-, low-, or very-low incomes. In addition, FHFA’s housing 

goals’ regulation also recognizes the importance of the Fannie Mae and Freddie Mac in financing small multifamily 

housing where the housing serves low-income families.

There are Lending Opportunities in the Lower Mississippi Delta

Although there are a limited number of multifamily properties located throughout the Lower Mississippi Delta, 

opportunities for lending, and providing liquidity, do exist. Many of the region’s rural tracts are located in towns near 

institutions of higher learning or in small towns that are in nearby proximity to larger metro areas. 

There are also lending opportunities in slower-growth rural tracts. With the expertise of local partners such as non-profits 

and other like-minded entities, as well as property owners, it is possible to have a solid impact on improving conditions 

throughout the rural areas of the Lower Mississippi Delta. 

Tanya Zahalak

Senior Multifamily Economist

Multifamily Economics and Market Research

July 2018

The author would like to thank Fannie Mae Economists Nuno Mota and Huachen Qin for contributing data to this 

commentary.

Opinions, analyses, estimates, forecasts and other views of Fannie Mae's Multifamily Economics and Market Research 

Group (MRG) included in these materials should not be construed as indicating Fannie Mae's business prospects or 

expected results, are based on a number of assumptions, and are subject to change without notice. How this information 

affects Fannie Mae will depend on many factors. Although the MRG bases its opinions, analyses, estimates, forecasts 

and other views on information it considers reliable, it does not guarantee that the information provided in these 

materials is accurate, current or suitable for any particular purpose. Changes in the assumptions or the information 

underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts and other 

views published by the MRG represent the views of that group as of the date indicated and do not necessarily represent 

the views of Fannie Mae or its management.