Section 8 Fair Market Rent (FMR) for ZIP 71653 - 2027

Location: Chicot County, AR | Metro: Chicot County, AR

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$810
1 Bedroom	$870
2 Bedrooms	$1,140
3 Bedrooms	$1,470
4 Bedrooms	$1,600
5 Bedrooms	$1,856
6 Bedrooms	$2,079
7 Bedrooms	$2,245
8 Bedrooms	$2,357

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,813

Median Household Income

$51,797

Housing Units

2,510

Renter Percentage

27.8%

Occupancy Rate

73.8%

Renter Occupied

515

In evaluating whether a landlord should purchase property in ZIP code 71653 for Section 8 investment, follow this decision tree based on the specific data points provided.

Step 1: Determine if the Fair Market Rent (FMR) of $1,090 can cover the debt service on a property priced at $178,170. This calculation is critical because it directly impacts the financial viability of the investment. If the FMR does not clear the debt service, the answer is a firm No. Landlords need to ensure that the rental income will at least meet their mortgage obligations and other expenses.

Step 2: Assess the relationship between the FMR and the market rent, which is reported to be $900 according to the Census ACS. Here, there are three potential branches:

If the market rent is below the FMR, then landlords might find opportunities to increase rents closer to the FMR, making the answer It Depends. The ability to raise rents without losing tenants is key.
If the market rent equals the FMR, then the answer is No. There would be little room for adjustment, and the investment would likely break even at best.
If the market rent is above the FMR, then the answer is Yes. This indicates a strong market where properties could potentially command higher rents, providing a buffer against any fluctuations in the FMR.

Step 3: Consider the demand factors. With 27.8% of the population being renters and the days on market (DOM) status being N/A, the analysis shifts towards understanding if these conditions suggest sufficient demand. Given that the percentage of renters is relatively high, it suggests a strong tenant pool. However, the lack of DOM data makes it difficult to gauge how quickly properties are rented out. Thus, the answer here is It Depends. High renter rates indicate potential demand, but the absence of DOM data means that landlords must investigate further to understand the rental market's dynamics and ensure that properties can be filled promptly.

To summarize, the decision to invest in ZIP 71653 hinges on the financial alignment between FMR and debt service, the comparison between market rent and FMR, and the evaluation of demand factors. Careful consideration of these elements will guide landlords towards a profitable Section 8 investment strategy.

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.