Location: Hot Springs, AR | Metro: Hot Springs, AR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
The rental market in ZIP code 71902, located in Arkansas, is characterized by a Federal Market Rent (FMR) of $1010 for the fiscal year 2024. This figure serves as a benchmark for the average fair market rent in the area, indicating the level at which HUD sets payment standards for Section 8 housing vouchers. However, the lack of specific market rent data suggests that the local rental market may not be fully captured by standard real estate metrics, possibly due to limited availability or reporting.
The absence of data on the percentage of price-cut share, days on market (DOM), and median home value points to a market that may be less active in terms of property turnover and sales. This could imply that the housing stock is relatively stable, with fewer properties being listed for sale or rent, leading to less competitive pricing dynamics. While the exact relationship between supply and demand cannot be determined from the available data, the incomplete picture hints at a market that might be experiencing low volatility or activity levels.
The unknown percentage of renter share in the market provides insight into the long-term housing pressures. A high renter share often indicates a tight rental market, where a significant portion of residents are renters rather than homeowners. In such scenarios, there can be increased pressure on rental prices and availability. Conversely, a lower renter share might suggest a more balanced market with a healthy mix of homeownership and rental options. The lack of this statistic means that it's unclear whether there is a substantial rental population driving up housing costs or if homeownership remains the predominant form of housing tenure in the area.
Despite the limitations in the data, the FMR of $1010 stands out as a key indicator. It reflects the government's assessment of what constitutes a reasonable rent in the area, which can guide both landlords and small-portfolio investors in setting their own rents. For landlords, understanding this benchmark is crucial for maintaining competitiveness while ensuring compliance with Section 8 requirements. Small-portfolio investors must also consider this figure when evaluating potential returns on investment.
In summary, ZIP 71902 presents a rental market with a clear federal guideline but lacking in comprehensive local metrics. This suggests a potentially stable yet underreported market dynamic, where supply and demand relationships are not easily discernible. The unknown renter share leaves questions about the long-term pressures on housing costs, making it essential for stakeholders to stay informed through other channels and adapt to the evolving landscape of the local rental market.
Data Sources: FMR data from HUD (2027).
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.