Location: Lincoln County, AR | Metro: Desha County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $670 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,270 |
| 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 Section 8 thesis in ZIP 71639 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for a two-bedroom apartment in ZIP 71639 is $810. However, the Census American Community Survey (ACS) indicates that the market rent for a similar unit is $711. This represents a gap of $99, or approximately 14%, between the FMR and the market rent.
This gap makes ZIP 71639 a compelling location for landlords and small-portfolio investors interested in the yield play. Given that 46.3% of residents are renters and the median income is $37,173, the FMR serves as a reliable benchmark for rental prices. By accepting Section 8 tenants, landlords can benefit from a higher rental income compared to the open-market rate. This strategy aligns well with the local economic conditions, where the median home value is $101,167, indicating a mix of affordable and slightly above-average housing options.
While the FMR is designed to ensure affordability, it also means that landlords may face challenges in covering maintenance and operational costs if they rely solely on the voucher program. Therefore, it is crucial for landlords to understand the local market dynamics and the potential for higher yields when renting to voucher holders. This approach can help maximize returns while providing essential housing support to those who need it most.
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.