Location: Sevier County, AR | Metro: Sevier County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The ZIP code 71842 presents a unique opportunity for real-estate investors interested in both yield and stability. To understand its potential, let's break down the key metrics provided.
First, the yield analysis: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,070. This is significantly higher than the market rent of $909. Since there is no home value data available, we can focus on the rental aspect. The discrepancy between the FMR and the market rent suggests that there is room for increasing rental income, potentially up to the FMR level if market conditions allow. This indicates a high-yield potential for properties in this ZIP code.
Moving on to stability: The ZIP code has a relatively low percentage of renters at 18.6%, which could imply that tenants might be less likely to stay long-term, affecting the stability of cash flow. However, the lack of data on days on market (DOM) makes it challenging to fully assess tenant turnover rates. On a positive note, the median household income is $55,810, which is above average and signals that residents have the financial capability to afford rent payments. This income figure supports a more stable rental environment despite the lower percentage of renters.
Considering these factors, ZIP 71842 appears to be a market that offers a balance between high-yield potential and moderate stability. The ability to command rents close to the FMR level provides a significant upside for investors looking to maximize their returns. At the same time, the decent household income suggests that tenants are financially secure, reducing the risk of default. However, the low percentage of renters does introduce some volatility into the equation.
To summarize, this ZIP code leans towards being a high-yield market with moderate stability. Investors should weigh the potential for higher rental income against the slightly higher risk of tenant turnover when making investment decisions.
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.