Location: Sevier County, AR | Metro: Sevier County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $630 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
U.S. Census Bureau data (2024)
A skeptical investor might raise several objections regarding the ZIP code 71823, particularly concerning the Fair Market Rent (FMR) of $880 for the fiscal year 2026, the rental market's vacancy rate of 6.1%, and the availability and trend of housing vouchers.
Objection 1: Will FMR $880 cover the mortgage on a home in ZIP 71823?
The median home value in ZIP 71823 is $114,600, according to recent data. To determine if the FMR can cover a mortgage, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $114,600 loan would be approximately $580. This figure does not include property taxes, insurance, and maintenance costs, which would add to the total monthly expenses. Given that the FMR is $880, it suggests that the rent could potentially cover the mortgage, but only with a narrow margin and without considering additional costs.
Objection 2: Is there enough renter demand at 6.1%?
The vacancy rate of 6.1% indicates a relatively balanced rental market in ZIP 71823. A lower vacancy rate generally means higher demand for rental properties. However, the exact number of renters in the area is not specified in the data. It is important to note that a 6.1% vacancy rate is slightly above the national average, which typically hovers around 5%. This suggests that while there is demand, it may not be as robust as in areas with lower vacancy rates.
Objection 3: Will vouchers keep pace with market rents in ZIP 71823?
The data does not provide specific information on the trend of housing vouchers in ZIP 71823. However, it is known that voucher amounts are adjusted annually based on HUD’s Fair Market Rents. In ZIP 71823, the FMR is set at $880 for FY 2026. If the voucher amounts are aligned with these FMRs, they should cover a significant portion of the rent. Yet, the precise amount of vouchers available and their growth rate relative to market rents is not detailed in the provided data, making it difficult to definitively state whether vouchers will keep pace with rising market rents.
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.