Location: Ouachita County, AR | Metro: Nevada County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
When considering whether to purchase properties in ZIP code 71726 for Section 8 investment, follow this decision tree:
Step 1: Can the Fair Market Rent (FMR) of $880 cover the debt service?
No. The FMR of $880 for the metro area in fiscal year 2026 does not clear the debt service on a property in ZIP 71726, as the median home value and typical mortgage payments are not specified but are likely higher given typical real estate costs.
Step 2: How does the market rent of $500 compare to the FMR?
The market rent of $500, based on Census ACS data, is below the FMR of $880. This indicates that the rental market in ZIP 71726 is less expensive compared to what the government deems fair for housing assistance.
Step 3: Is there sufficient demand with 15.6% of residents being renters and an unspecified number of days on the market (DOM)?
It depends. With 15.6% of residents renting, there is a moderate level of demand. However, the number of days on the market (DOM) is not provided, which is crucial for understanding how quickly units can be filled. Additionally, the gap between market rent ($500) and FMR ($880) suggests potential profitability if you can secure Section 8 tenants willing to pay the higher rate.
If the answer to Step 1 is no, it's a strong indication that Section 8 may not be a financially viable option for covering mortgage payments. For Step 2, since market rent is below FMR, there's a possibility to attract tenants paying the higher FMR rate, which could improve your cash flow. In Step 3, without specific DOM data, the analysis leans towards it depending on other factors such as vacancy rates and competition in the local rental market.
To make a final decision, consider the following:
Evaluate the exact debt service costs against the FMR to see if any adjustments can make it work.
Research the likelihood of securing Section 8 tenants who will pay closer to the FMR rather than the lower market rent.
Analyze additional metrics like vacancy rates and the number of available rental units to gauge the overall demand and competition.
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.