Location: Lafayette County, AR | Metro: Lafayette County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 71826, located in Lafayette County, AR metro, reveals several key points that landlords and small-portfolio investors should consider before making investment decisions.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area, set at $910 for fiscal year 2026, significantly exceeds the current market rent of $414 based on Census ACS data. This indicates a potential gap between what the government deems fair and what tenants are willing to pay, suggesting that landlords might need to adjust their expectations if they rely solely on the FMR for setting rental rates.
Regarding the affordability of acquisitions, the median home value in ZIP 71826 is $93,999. However, due to the lack of data on days on market (DOM) and the percentage of homes that required price cuts, it's challenging to provide a definitive assessment on how quickly properties can be sold or if they're being offered at competitive prices. This uncertainty could pose risks for investors looking to turn a quick profit or needing flexibility in their investment timeline.
Lastly, there is a notable tenant demand in the area. With a total population of 962 and a 17.5% renter share, approximately 168 individuals are actively seeking rental housing. While the number of renters is relatively low, the high proportion of the population renting suggests a steady demand for rental properties, especially considering the limited supply.
In summary, while the current market conditions indicate a lower rent rate than the FMR, the steady tenant demand and affordable median home values present opportunities for landlords and small-portfolio investors. However, the lack of detailed sales data introduces an element of risk that must be carefully weighed against the potential returns. Investors should focus on understanding local market dynamics and setting realistic rental prices to ensure profitability.
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.