Section 8 Fair Market Rent (FMR) for ZIP 71725 - 2027

Location: Dallas County, AR | Metro: Cleveland County, AR

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$750
1 Bedroom	$790
2 Bedrooms	$980
3 Bedrooms	$1,250
4 Bedrooms	$1,450
5 Bedrooms	$1,682
6 Bedrooms	$1,884
7 Bedrooms	$2,035
8 Bedrooms	$2,137

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

264

Median Household Income

$N/A

Housing Units

273

Renter Percentage

37.0%

Occupancy Rate

56.4%

Renter Occupied

A landlord considering ZIP code 71725 for Section 8 investments must follow a structured decision-making process based on the financial metrics available. Here's how to approach the decision:

If the answer to the first question is yes: Does the Fair Market Rent (FMR) of $810 cover the debt service on a property valued at $75,126? In this case, the FMR does indeed clear the debt service, indicating that the rental income from a Section 8 voucher could sufficiently support the mortgage payments. This makes the area financially viable for Section 8 properties.
If the answer to the second question is yes: Is the market rent of $475 above, at, or below the FMR? The market rent in ZIP 71725 is below the FMR, suggesting that there is room for landlords to increase rents to match the FMR without losing tenants. This means that landlords can potentially benefit from the higher rent ceiling set by the government while still attracting tenants.
If the answer to the third question is yes: Are 37.0% of residents renters, and is the number of days on the market (DOM) sufficient to indicate demand? With 37.0% of the population being renters, there is a significant portion of the market that could be interested in Section 8 properties. However, the lack of data regarding the DOM indicates an incomplete picture of the demand. To make a definitive decision, landlords need to assess additional factors such as the local vacancy rate and competition from other rental properties.

Yes: If all three conditions are met—FMR covers debt service, market rent is below FMR, and there is a substantial percentage of renters—the investment in ZIP 71725 for Section 8 properties would be advisable.

No: If any of these conditions fail, particularly if the FMR does not cover the debt service or if the market rent is already at or above the FMR, investing in this ZIP code would not be recommended due to insufficient financial viability or low potential for profit.

It Depends: If the demand cannot be clearly assessed due to missing DOM data, landlords should seek additional information about the local rental market before making a decision. They must ensure that there is enough demand to fill vacancies and maintain a steady cash flow.

Investing in ZIP 71725 for Section 8 properties requires careful consideration of the financials and market dynamics. Landlords should use the provided data to inform their decisions and avoid speculation.

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.