Location: Hot Spring County, AR | Metro: Clark County, AR
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 | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $126,253 | 0.74% | D |
| 3BR | $1,250 | $201,844 | 0.62% | D |
| 4BR | $1,330 | $282,544 | 0.47% | F |
U.S. Census Bureau data (2024)
Skeptical investors often have valid concerns when considering investments in ZIP 71923 (Arkadelphia, AR). Here are some common objections and the relevant data to address them.
Objection 1: Will FMR $880 (metro FY 2026) cover the mortgage on a $181,689 home?
The Fair Market Rent (FMR) of $880 does not directly cover the mortgage on a $181,689 home. However, the FMR indicates the rental income potential, which can be crucial for cash flow analysis. According to recent data, the average home value in ZIP 71923 is approximately $178,128, suggesting that homes in this area are relatively affordable. For a $181,689 home, a typical 30-year fixed-rate mortgage might result in monthly payments around $750-$800, depending on interest rates and down payment. Therefore, the FMR of $880 could reasonably cover the mortgage payment and provide a modest profit margin.
Objection 2: Is there enough renter demand at 40.2%?
The renter demand at 40.2% is a significant portion of the housing market but may still leave room for improvement. With a rental average of $792 per month, the demand is likely to be steady, though not exceptionally high. This percentage suggests that there are enough renters in the area to support a decent vacancy rate, making it feasible for landlords to find tenants. However, it's important to note that while 40.2% indicates a substantial renter population, the actual demand will depend on factors such as job growth and affordability.
Objection 3: Will vouchers keep pace with $809 market rents?
Vouchers are designed to help low-income families afford housing, but their adequacy depends on the local market conditions. In ZIP 71923, the average market rent is $792 per month, slightly below the $809 figure mentioned. While this suggests that vouchers could potentially cover the cost of renting in this area, it's critical to consider how voucher amounts adjust over time. If the market rent increases faster than voucher allocations, landlords may face challenges in maintaining profitability. As of now, the current FMR of $880 suggests that voucher holders can generally afford market rents, but long-term sustainability requires monitoring both rent trends and voucher adjustments.
Note: The data provided does not include specific projections for 2026 regarding mortgage payments or voucher amounts, so some assumptions are made based on current trends.
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.