Location: Desha County, AR | Metro: Desha County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 71674 centers around the discrepancy between the Fair Market Rent (FMR) set at $940 for the fiscal year 2026 and the actual market rent of $742, as per the Census ACS data. This gap amounts to $198, representing an increase of approximately 26.7% over the market rent.
In ZIP 71674, where only 15.0% of residents are renters and the median household income is $52,125, the higher FMR suggests that voucher tenants can afford higher rent payments compared to the open market. This makes it a yield play for landlords and small-portfolio investors. With the FMR exceeding the market rent, landlords can secure rental income closer to the FMR, thereby increasing their yield.
The median home value being listed as N/A indicates that there might be limited data available for homeownership in this area. However, the focus on rental income through Section 8 vouchers provides a stable and predictable source of revenue for properties. Given the median income level, it is reasonable to assume that the majority of residents could struggle to find affordable housing without assistance, making Section 8 vouchers particularly valuable.
The disparity between FMR and market rent also highlights the potential for landlords to offer units at a premium to non-voucher tenants, who may be willing to pay above the market rate due to the scarcity of affordable options. This dual strategy can help maximize returns while still participating in the Section 8 program.
Investors should note that the FMR is designed to reflect the 40th percentile of rent in the area, meaning that a significant portion of the rental market is priced below this figure. Thus, while the FMR offers a higher rent threshold, it is essential to balance this with the local economic conditions to ensure the property remains attractive to potential tenants.
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.