Title: Converting a Fire-Damaged SFR into a Triplex/Quad – Jackson, MS

[James Mays]

Hi everyone,

I own a fire-damaged single-family home in Jackson, MS that I’m considering tearing down and replacing with a duplex or triplex or quadplex to maximize rental income. I’m weighing my options between rebuilding as-is or converting to multi-family.

Current situation:

• Mortgage: ~$78,000

• Insurance payout (State Farm): ~$190,000 for repairs/rebuild

• Zoning: Currently zoned SFR — would need rezoning or a conditional use permit for multi-family

• Tenant base goal: Section 8 or workforce housing for stable occupancy

• Timeline goal: 6–8 months from demo to completion

Key questions for the community:

1. Has anyone successfully rezoned a property in Jackson? How long and costly was the process?

2. With the insurance payout, is it more practical to rebuild as a multi-family or stick with an SFR for faster turnaround?

3. Any lessons learned on managing small multi-family properties in affordable markets like Jackson?

4. Any recommendations on leveraging insurance funds alongside financing to maximize ROI?

I’m looking to make the most of this unfortunate situation and would appreciate any insight from those who’ve been through similar projects.

Thanks in advance for your help!

[Jay Hinrichs]

Majority of Jackson MS rental stock can be bought below replacement costs. I would never do this in Jackson. I would grab the cash and go by something nicer than section 8 Jackson housing.  my personal opinion after owning a LOT of jackson section 8 rentals ..