Location: Lafayette County, AR | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 71845 operate under specific parameters that affect both landlords and tenants. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $960. This figure is crucial because it represents the maximum amount that the housing authority will pay to landlords participating in the Section 8 program.
In contrast, the local market rent for a similar two-bedroom unit is reported to be $820 according to the latest Census ACS data. This indicates that the SAFMR is higher than the average market rent, which can be beneficial for landlords. However, understanding how the voucher payment works is essential to fully grasp the financial implications.
A Section 8 voucher does not cover the entire rent amount; rather, it compensates for the difference between the tenant's portion and the total rent. Typically, the tenant is responsible for paying approximately 30% of their adjusted monthly income towards rent. The remaining amount up to the SAFMR is covered by the housing authority. Additionally, utility allowances are factored into the reimbursement, but these vary based on the household size and local utility costs.
For example, if a tenant has an adjusted monthly income of $1,500, they would pay around $450 towards rent. If the rent for a two-bedroom apartment is $960, the housing authority would cover the rest, which is $510. Utility allowances would then be added to this figure, depending on the specifics of the household and local rates.
In ZIP 71845, given that the SAFMR exceeds the local market rent, landlords could potentially receive a surplus. If a landlord sets the rent at the SAFMR level of $960, and the tenant's portion is $450, the landlord would receive the full $960. This is a $140 surplus over the local market rent of $820. However, landlords must ensure that their rental units meet the quality standards required by the Section 8 program, including passing regular inspections.
To summarize, in ZIP 71845, landlords participating in the Section 8 program can expect a reimbursement of up to $960 for a two-bedroom apartment, with the tenant paying about 30% of their income. With the local market rent at $820, landlords can typically charge closer to the SAFMR and still see a positive cash flow. This setup provides a stable income source for landlords, while ensuring affordability for low-income tenants.
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.