Location: Howard County, AR | Metro: Howard County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 71851 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $990 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant under the Section 8 program. However, it's important to note that the local market rent in ZIP 71851 is significantly lower, averaging around $816 per month according to the Census ACS (American Community Survey).
A landlord should understand that the actual payment received from a voucher is calculated differently. The voucher system requires tenants to contribute a portion of their income towards rent, which is typically 30% of their adjusted monthly income. After the tenant's contribution is applied, the remaining balance is covered by the housing authority, up to the SAFMR limit.
In addition to the base rent, the housing authority also provides utility allowances. For a two-bedroom apartment in ZIP 71851, the utility allowance is usually around $250 per month. This allowance is intended to cover the cost of utilities such as electricity, water, and gas, but it is not guaranteed to fully cover these expenses, especially if the tenant uses utilities inefficiently.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,500. Their contribution towards rent would be $450 (30% of $1,500). The housing authority would then cover the difference between the tenant's contribution and the SAFMR, up to the limit. In this case, the housing authority would pay $540 ($990 - $450), making the total reimbursement $790 ($540 base rent + $250 utility allowance).
This results in a reimbursement gap, as the local market rent is $816, and the total reimbursement from the voucher is $790. Therefore, landlords would face a shortfall of $26 per month for a two-bedroom unit in ZIP 71851 when renting to a Section 8 tenant. Conversely, if the local market rent were lower than the SAFMR, landlords could see a surplus, but in ZIP 71851, they can expect a consistent gap due to the lower local market rates compared to the SAFMR.
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.