Location: Nevada County, AR | Metro: Hempstead County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
U.S. Census Bureau data (2024)
The analysis of Section 8 real estate in ZIP 71835 reveals a significant gap between the Federal Market Rent (FMR) and the actual market rent. The FMR for ZIP 71835 is set at $880 for the fiscal year 2026, while the market rent stands at $655 according to the latest Census ACS data. This discrepancy amounts to a difference of $225, or approximately 34.3%, indicating that the FMR is higher than the market rent.
This scenario presents an opportunity for landlords and small-portfolio investors. By accepting Section 8 tenants, landlords can secure rental income that exceeds the local market rates by a considerable margin. For instance, a landlord could charge $655 and receive an additional subsidy of $225 from the government, resulting in a total income of $880 per unit. This makes ZIP 71835 a yield play, as the effective rental income is significantly above the typical market rate.
However, there are considerations regarding the cost of housing voucher tenants below open-market rates. While the financial benefit is clear, landlords must also be aware of the potential administrative burdens associated with Section 8 properties. These include regular inspections, adherence to Housing Quality Standards (HQS), and ensuring that the units remain affordable for low-income families.
The ZIP 71835 context shows that 8.3% of the population are renters, with a median income of $56,483. Given these figures, the area has a relatively low cost of living compared to other regions in Arkansas and the United States. Accepting Section 8 tenants in ZIP 71835 can be a strategic move for landlords looking to stabilize their rental income and tap into a government-backed program that ensures timely rent payments.
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.