Location: Hot Spring County, AR | Metro: Hot Springs, AR MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $790 | $84,738 | 0.93% | C |
| 2BR | $1,020 | $120,436 | 0.85% | C |
| 3BR | $1,310 | $227,789 | 0.58% | F |
| 4BR | $1,510 | $390,040 | 0.39% | F |
| 5BR | $1,752 | $497,584 | 0.35% | F |
U.S. Census Bureau data (2024)
97.1% of the residents in ZIP 71901, Hot Springs, AR, are renters, making up a significant portion of the population at 37.1%. This high renter share indicates a strong demand for rental properties. The Fair Market Rent (FMR) for the area, set at $910 for zip FY 2024, is a key figure for Section 8 investors to consider. However, the actual market rent, measured by ZORI, stands at $1,158, which is notably higher. This suggests that while Section 8 vouchers can cover a substantial portion of the rent, landlords might need to adjust their expectations if they aim to compete with the local market rates.
The median home value in the area is $209,123, providing a benchmark for property values. For those considering purchasing homes to rent out, this figure can help gauge potential investment costs. Additionally, the median income of $53,514 offers insight into the financial capacity of potential tenants, ensuring that the income levels support the rental prices within the voucher limits.
Investors should also be aware of the 66-day Days on Market (DOM), indicating how long it typically takes to rent out a property. This metric is crucial for cash flow projections and understanding the vacancy rate risk. Furthermore, the price-cut share of 0.2% shows that there is little need to reduce asking prices to attract tenants, which is positive for maintaining rental income levels.
In conclusion, the data paints a picture of a robust rental market in Hot Springs, AR, with a high demand for affordable housing. The disparity between the FMR and ZORI highlights an opportunity for landlords to leverage Section 8 vouchers effectively. Given the strong tenant base and minimal need for price reductions, ZIP 71901 presents a favorable environment for Section 8 investments. Verdict: Invest.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.