Comprehensive Property & Investment Analysis: 112-Acre Dual-Residence Farm & Cattle Operation at 3459 SCR #135, Morton, MS -

Securing a substantial 112-acre contiguous pasture tract equipped with existing residential structures, active water assets, and agricultural infrastructure under $300,000 is an increasingly rare opportunity in the Southeastern rural land market. Located at 3459 SCR #135 in Morton, Mississippi 39117 (situated in Smith County’s Polkville community), the “Smith 112” offers a versatile land parcel listed at $250,000 following a $10,000 (-3.8%) price reduction on August 20, 2026.

Priced at a raw sticker price of $2,232.14 per acre—or $113.12 per square foot based strictly on the 2,210-square-foot primary brick residence—this property presents a classic value-add agricultural and residential investment. The tract combines 112 acres of fenced pasture, two distinct residential dwellings (including one income-producing tenant property), four stocking ponds, a hay barn, functional outbuildings, and mature pecan trees.

A critical legal defining factor of this listing is its status as 16th Section Land, carrying a $2,500 annual lease fee with a lease renewal date in 2044. Sold strictly in AS-IS condition, this property requires a nuanced evaluation of leasehold land ownership, structural renovation overhead, agricultural carrying capacity, and cash flow potential.

Technical Baseline & Property Specifications

A detailed examination of Smith County public tax records (Parcel ID: 045C16000010) and listing disclosures provides the baseline data for the Smith 112 property:

Physical Address: 3459 SCR #135, Morton, MS 39117 (Polkville Community)
County / State: Smith County / Mississippi
Parcel Identification (APN): 045C16000010 (Tax Parcel: 045C-16-)
Current Asking Price: $250,000 (Reduced from $260,000 on August 20, 2026)
Total Land Footprint: 112.00 Acres (4,878,720 Sq. Ft.)
Primary Residence Footprint: 2,210 Sq. Ft. Brick Home (4 Bedrooms / 2 Bathrooms)
Secondary Residence Footprint: Single-Family Rental Home (3 Bedrooms / 1 Bathroom, Currently Tenant-Occupied)
Price Metrics: $2,232.14 / Acre (Gross Sticker) | $113.12 / Sq. Ft. (Primary House Basis)
Land Tenure / Legal Status: 16th Section Public School Trust Leasehold
Annual Ground Lease Fee: $2,500.00 / Year (Next Renewal Scheduled for 2044)
Water & Agricultural Assets: 4 Livestock/Fishing Ponds, Fenced Pasture, 2 Producing Pecan Trees
Outbuilding Infrastructure: Metal Hay Barn, 2 Storage Sheds, Legacy Chicken Coop
Geographic Coordinates: 32.186, -89.68785
Annual Property Taxes: $2,543.00 / Year (2025 Assessment Basis; Tax Assessed Value: $165,320)
HOA / Association Dues: $0.00 / Month (Fee Simple/Leasehold Rural – No Restrictions)

16th Section Land in Mississippi: Deep-Dive Legal & Financial Analysis

To evaluate the true market value of the Smith 112, prospective buyers must understand the mechanics of 16th Section Public School Trust Land in Mississippi.

1. What is 16th Section Land?

Under Mississippi law, Section 16 of every township was reserved during nineteenth-century land surveys to generate revenue for local public school districts. The legal fee simple title to the underlying dirt remains held in trust by the State of Mississippi and managed by the local county Board of Education (in this case, the Smith County School District).

When you purchase a 16th Section property, you are buying:

Full ownership of all structural improvements (the brick house, rental home, barn, sheds, fences, and ponds).
The exclusive leasehold rights to possess, use, farm, and inhabit the 112 acres of land until the lease term expires.

2. Lease Financials & Renewal Mechanics

Annual Ground Rent: The buyer must pay a fixed $2,500.00 annual lease payment to the school board.
Lease Renewal Horizon (2044): The current lease contract runs through 2044, providing approximately 18 years of guaranteed possession under the existing terms.
Appraisal at Renewal: Upon lease renewal in 2044, local Mississippi school boards are legally required to reappraise the unimproved raw land value to set the updated annual lease rate for the next term.

3. Impact on Financing, Appraisal, & Valuation Discount

Mortgage Constraints: Standard conventional residential mortgages (FHA, VA, Fannie Mae) can be challenging to secure on 16th Section land if the remaining lease term is less than 30 years. Most buyers utilize specialized agricultural lenders (e.g., Southern AgCredit, Land Bank of Mississippi) or cash.
Valuation Discount: Because the buyer does not own the underlying real property title, 16th Section land historically trades at a 25% to 40% discount compared to surrounding “fee simple” deeded farmland. This discount is already reflected in the $250,000 price tag ($2,232/acre for improved pasture land with two houses).

Structural & Residential Property Audit

The property includes two distinct residential dwellings along with a mobile home slated for removal.

1. Primary Residence (2,210 SF Brick Home)

Layout & Exterior: Single-story ranch-style brick structure featuring a 4-bedroom, 2-bathroom floor plan, a covered front porch, an attached carport, and a gravel driveway approach.
Sunroom & Living Spaces: Includes a rear enclosed sunroom with window walls looking directly over the pasture and ponds, creating an ideal indoor-outdoor living space.
Condition & Deferred Maintenance: The home is sold strictly AS-IS and requires TLC. Priority renovation areas include updating the roof, servicing or replacing the HVAC system, updating kitchen cabinetry and appliances, and refreshing interior flooring and paint throughout.

2. Secondary/Tenant Rental House (3 Bed / 1 Bath)

Immediate Cash Flow: The secondary home features a 3-bedroom, 1-bathroom wood-frame setup that is currently occupied by a paying tenant.
Financial Offset: The rental income generated by this second dwelling provides immediate off-setting revenue that can cover the $2,500 annual 16th Section lease fee plus the $2,543 annual property tax obligation.
Renovation Needs: Like the main home, the rental structure requires ongoing maintenance, roof checks, and cosmetic updates to maintain long-term tenant stability.

Land Assets, Agricultural Infrastructure, & Water Resources

1. Pasture Quality & Livestock Carrying Capacity

Fenced Open Pasture: The 112 acres consist primarily of gently rolling, cleared grass pastureland enclosed by perimeter and cross-fencing.
Grazing & Hay Yield: The acreage is well-suited for a working cattle operation, equine setup, or commercial hay production. In Central Mississippi, well-managed pasture typically supports 1 animal unit (cow/calf pair) per 2.5 to 3.5 acres. This 112-acre tract can comfortably carry 30 to 40 head of cattle without overgrazing.

2. Water Resources: Four Stocking Ponds

Hydrological Coverage: The property contains four distinct ponds distributed across the acreage.
Agricultural Utility: Multiple water sites eliminate the need to pump water across pastures, allowing rotated cattle herds to access fresh water in every paddock.
Recreational Value: The larger ponds provide on-site bass and catfish fishing and attract migratory waterfowl during winter flight seasons.

3. Outbuildings & Specialty Crops

Hay & Equipment Barn: A large metal-roofed pole barn provides covered storage for large round hay bales, tractors, brush hogs, and farming implements.
Storage Sheds & Chicken Coop: Includes two functional utility storage sheds for tools and tack, along with a legacy chicken coop for small farm poultry setups.
Producing Pecan Trees: Two mature, producing pecan trees sit near the homestead grounds, offering seasonal harvest yield.

Unbundled Asset Valuation & Allocation Model

To analyze the $250,000 asking price, we can unbundle the physical assets to determine how much value each component contributes to the purchase price:

112 Acres Leased Pastureland: $123,200 (Valued at ~$1,100/AC reflecting the 16th Section leasehold status discount)
Primary 2,210 SF Brick Residence (As-Is): $65,000 (Valued at ~$29.41/SF reflecting required renovation budget)
Secondary Rental House (Income Producing): $32,000 (Capitalized value based on active tenant occupancy and rental stream)
Agricultural Outbuildings & Barns: $15,000 (Replacement value for metal hay barn, 2 storage sheds, and chicken coop)
Water Infrastructure (4 Ponds & Fencing): $14,800 (Excavation cost of 4 ponds plus miles of perimeter wire fencing)
TOTAL ESTIMATED ASSET VALUE:$250,000 (Matches Current Asking Price – $2,232.14 / Acre Basis)

Projected Capital Expenditure (CapEx) & Renovation Budget

Because the property is being sold strictly AS-IS, buyers should factor these estimated structural renovation costs into their acquisition strategy:

Primary House Roof & Flashing Repairs: $7,500 (DIY) to $16,000 (Contractor)
- Inspect composition shingles, repair wood rot along fascia, and re-flash chimney/sunroom seams.
Primary House HVAC & Duct Replacement: $6,000 (DIY) to $12,500 (Contractor)
- Install modern high-efficiency heat pump compressor, air handler, and service ductwork.
Interior Flooring & Kitchen Overhaul (Main House): $8,000 (DIY) to $20,000 (Contractor)
- Replace worn carpeting with waterproof LVP, install new kitchen countertops, and update appliances.
Secondary Tenant House Maintenance: $3,000 (DIY) to $8,500 (Contractor)
- Minor roof patching, plumbing repairs, fresh exterior paint, and porch updates.
Pasture Fence Repair & Pond Maintenance: $2,500 (DIY) to $6,500 (Contractor)
- Clear overgrown fence lines, replace broken wire/posts, and clear pond spillways.
Mobile Home Removal & Site Cleanup: $1,500 (DIY) to $3,500 (Contractor)
- Complete removal of the old mobile home and debris grading around the homesite.
TOTAL PROJECTED CAPEX BUDGET:$28,500 (DIY Scope) to $67,000 (Full Contractor Scope)

Financial Operating Model: Recurring Expenses vs. Rental Income

Understanding the annual holding costs and income potential is critical for evaluating the property’s ongoing cash flow:

Annual Property Taxes: $2,543.00 / Year
Annual 16th Section Ground Lease Fee: $2,500.00 / Year
Estimated Property Insurance (Both Structures): $3,200.00 / Year
TOTAL RECURRING ANNUAL HOLDING COSTS:~$8,243.00 / Year ($686.92 / Month)
Estimated Tenant House Rental Income: $750.00 to $950.00 / Month ($9,000 to $11,400 / Year)
NET OPERATING CASH FLOW:+$757.00 to +$3,157.00 / Year (Positive Cash Flow Surplus)

Strategic Takeaway: The tenant-occupied rental home completely covers the property’s annual property taxes ($2,543) and 16th Section lease fees ($2,500), leaving a net positive cash flow to offset holding costs while you farm or inhabit the primary brick residence.

Regional Proximity & Location Metrics

The property sits in a quiet rural setting in Smith County while maintaining accessible drive times to regional urban hubs and public recreational reserves:

Morton, MS: 13.3 Miles North
Bienville National Forest: 18.0 Miles Southwest (Offers public hunting, hiking, and equestrian trails)
Caney Creek Wildlife Management Area (WMA): 25.0 Miles Southwest (Prime deer and turkey hunting)
Downtown Brandon, MS (Jackson Metro Suburb): 25.4 Miles Northwest (Access to medical centers, big-box retail, and dining)
Jackson-Medgar Wiley Evers International Airport (JAN): ~32.0 Miles Northwest

Comparative Market Analysis (CMA)

Comparing the Smith 112 against recent rural land sales in Smith, Scott, and Rankin Counties illustrates its market positioning:

3459 SCR #135, Morton, MS (Subject Property): 112.00 AC | $250,000 ($2,232/AC)
- Features: 16th Section Leased Land ($2,500/yr); 2 Dwellings (1 Rented); 4 Ponds; Barn; Fenced Pasture.
Fee Simple Pastureland Comps (Smith/Scott County): 100.00 AC | $385,000 ($3,850/AC)
- Features: Raw deeded pasture with no homes, no active rental income, and primitive fencing.
Improved Deeded Farm Comps (Rankin/Smith Border): 110.00 AC | $520,000 ($4,727/AC)
- Features: Fee simple single home on pastureland with barn and ponds.

Comparative Takeaways

Capital Efficiency: Purchasing 112 acres with two homes for $250,000 allows buyers to secure a large working farm footprint for roughly 50% of the upfront acquisition cost of fee simple deeded land in the area.
Leasehold Trade-Off: The buyer trades ultimate fee simple land ownership for a low upfront purchase price and active rental cash flow that pays the ground lease.

Strategic Advantages vs. Critical Risk Factors

Strategic Advantages (Pros)

Unbeatable Cost Per Acre: $2,232/acre for an improved 112-acre pasture tract is one of the lowest entry prices in Central Mississippi.
Built-In Income Stream: Tenant-occupied rental home generates immediate cash flow to offset ground lease fees and property taxes.
Turnkey Livestock Utility: Fully fenced pasture, four watering ponds, and a hay barn make it ready for cattle or horses immediately.
Dual-Residence Flexibility: Live in the primary brick home while renting the secondary house, or use both for multi-generational family farming.

Critical Risk Factors (Cons)

16th Section Lease Structure: Requires an annual $2,500 ground lease payment and lease renewal in 2044.
AS-IS Renovation Burden: Both residential structures require capital investment for roof, HVAC, and interior updates.
Financing Limitations: Traditional residential mortgages are difficult to secure on leased land with under 20 years remaining; requires agricultural land lenders or cash.

Target Buyer Compatibility Matrix

Cattle Ranchers & Livestock Farmers:Ideal Fit
- Immediate access to 112 acres of fenced pasture, 4 ponds, and a hay barn at a low acquisition price.
Value-Add Farm Investors:Ideal Fit
- Existing tenant rental income covers land lease and property taxes, allowing investors to renovate the primary home and build equity.
Homesteaders & Multi-Generational Families:Strong Fit
- Two separate houses allow parents and adult children to live on the same farm with complete privacy.
Traditional Suburban Homebuyers:Unfavorable Fit
- Unfavorable fit for buyers requiring a move-in ready home funded by standard conventional FHA/VA mortgages.

Essential Buyer Due Diligence Roadmap

Before submitting an offer on 3459 SCR #135, buyers should complete these four critical verification steps:

Review 16th Section Lease Documents: Request a full copy of the official lease agreement from the Smith County Board of Education to verify lease terms, assignment fees, and renewal guidelines.
Conduct Structural & Roof Inspections: Hire an independent home inspector to evaluate the foundation, roof trusses, electrical panels, and HVAC systems on both homes.
Verify Tenant Lease Terms: Review the existing lease agreement for the secondary rental home, including monthly rent amount, security deposits, and payment history.
Inspect Water Wells & Septic Systems: Test the flow rate and water quality of the on-site well and inspect the tank capacity and drainfields of both septic systems.

3459 SCR #135 in Morton, MS, presents a value-add agricultural opportunity in Smith County. Offered at $250,000 ($2,232/acre) for 112 acres of fenced pasture, its value is backed by two residential homes, an active tenant cash flow stream, four livestock ponds, and extensive farming infrastructure. For cattle farmers, agricultural investors, or homesteaders comfortable with Mississippi’s 16th Section leasehold framework, this property offers a functional working farm at an accessible entry price.