Location: Howard County, AR | Metro: Hempstead County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 71859 reveals a unique real estate landscape that is heavily influenced by the presence of Section 8 housing. With a Fair Market Rent (FMR) of $940 for the fiscal year 2026, this figure stands out as it represents the maximum amount that HUD will pay for rental assistance in the area. This is particularly noteworthy because the market rent is listed as N/A, suggesting that the FMR is likely a significant benchmark for rental pricing in this ZIP code.
The median home value in ZIP 71859 is $112,006. This relatively low price point can be indicative of a high-yield market, where landlords might achieve higher returns on investment due to the lower purchase cost of properties. However, the absence of data on the percentage of renters and the number of days on the market (DOM) complicates a straightforward assessment of stability.
ZIP 71859 falls into a category that could be described as a high-yield/low-stability market. The primary driver for this classification is the reliance on Section 8 vouchers, which provide a guaranteed income stream but come with regulatory constraints and potential delays in payment. The 0.0% figure for renters suggests an extremely low rate of private renters, which could indicate a heavy reliance on subsidized housing. This reliance can lead to a steady cash flow but also introduces risks associated with government funding and policy changes.
The lack of income data further supports the notion of instability, as income levels are crucial indicators of a tenant's ability to sustain rent payments. Without this information, it's challenging to assess the overall financial health of the tenant pool and the potential for default on rental agreements.
In conclusion, ZIP 71859 presents an opportunity for high yields due to the low home values and guaranteed rental income through the FMR. However, the market's stability is questionable given the reliance on Section 8 and the absence of key economic indicators such as income levels and DOM. For landlords and small-portfolio investors looking to maximize returns, this ZIP code requires careful consideration and possibly a diversified portfolio to mitigate risks.
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.