Location: Chicot County, AR | Metro: Ashley County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 71663 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $880 per month for fiscal year 2026. In contrast, the local market rent for a similar unit, based on Census ACS data, runs at $625 per month.
A landlord participating in the Section 8 program receives payments from the housing authority on behalf of the tenant. This payment is calculated based on the SAFMR and the tenant's portion of the rent, which is typically 30% of their adjusted income. Let’s break down the reimbursement process:
The housing authority will pay the difference between the market rent and the SAFMR, up to the SAFMR limit. If a tenant's portion of the rent is $300, the housing authority would cover the remaining amount up to $880. However, if the market rent is below the SAFMR, the housing authority will only reimburse the actual market rent plus the tenant's portion, not exceeding the SAFMR.
In ZIP 71663, where the market rent is $625, the housing authority would pay the difference between the tenant's portion and the market rent. For instance, if the tenant pays $300, the housing authority would cover the remaining $325, making the total reimbursement $625. Utility allowances are additional funds provided to help cover utilities, but they do not affect the base rent calculation.
To summarize, in ZIP 71663, landlords can expect a reimbursement that covers the market rent of $625 when a tenant's portion is added. Since the SAFMR is higher at $880, there is no need to worry about the housing authority paying less than the market rent. However, landlords should note that the reimbursement will not exceed the market rent of $625 even though the SAFMR is higher.
This results in a surplus for landlords in ZIP 71663, as the reimbursement covers the entire market rent without leaving any gap. Landlords receive the full $625 in rent, which is lower than the SAFMR but sufficient to cover the local market rates.
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.