Location: Lincoln County, AR | Metro: Jefferson County, AR
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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $72,563 | 1.67% | A+ |
U.S. Census Bureau data (2024)
The rent math in ZIP 71601 does not align perfectly with the financial goals of a landlord. The Fair Market Rent (FMR) set at $880 for the fiscal year 2024 contrasts with the actual market rent reported at $828 according to the Census ACS. This indicates that while landlords can aim for the higher FMR rate, they may face challenges in achieving it due to current market conditions.
Regarding property acquisition, ZIP 71601 offers an affordable entry point for small-portfolio investors. With a median home value of $44,117, purchasing properties here is relatively cost-effective compared to other areas. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) suggest that the market is stable but not particularly dynamic. This stability means that while buying properties is affordable, quick flips or significant price adjustments might not be common opportunities.
Tenant demand in ZIP 71601 is strong, driven by a population of 13,367, with 48.4% of residents being renters. This substantial renter share ensures a steady pool of potential tenants, which is crucial for maintaining occupancy rates and sustaining rental income.
In summary, ZIP 71601 presents a mixed scenario for landlords and small-portfolio investors. While the rent math leans towards challenging market conditions, the affordability of property acquisition and robust tenant demand make it a viable option. Investors should focus on leveraging the lower median home values and high renter share to secure a stable investment portfolio, even if achieving the highest possible rents is not guaranteed.
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.