Location: Drew County, AR | Metro: Ashley County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
The ZIP code 71638, located in a county with 2,874 residents, stands out due to its unique demographic and economic characteristics. With 37.3% of the population renting their homes, it reflects a significant portion of tenants who might rely on rental assistance programs such as Section 8. The median income in this area is $31,667, which is notably lower than the median home value of $59,530. This disparity highlights the financial challenges faced by local residents when trying to purchase property.
Moving into the specifics of voucher economics, the Fair Market Rent (FMR) for ZIP 71638 is set at $880 for fiscal year 2026, which contrasts sharply with the current market rent of $557 according to Census ACS data. This gap indicates that landlords could potentially benefit from participating in the Section 8 program, as they would receive higher rents compared to the local market rates. However, it also suggests that there is a significant cost difference between what the government deems fair and what the market offers, which could impact the demand for Section 8 vouchers in the area.
The data signature for ZIP 71638 reads as "transitional." While the rental rate is lower than the FMR, indicating potential opportunities for landlords, the relatively low median income points towards an evolving housing market where affordability remains a key issue. Small-portfolio investors should consider these factors carefully when evaluating the potential returns and risks associated with properties in this ZIP code.
Data Sources: FMR data from HUD (2027). 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.