Location: Montgomery County, AR | Metro: Hot Springs, AR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 71933 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set by HUD for fiscal year 2024, is $810. In contrast, the Census ACS data indicates that the average market rent is $648. This means there is a gap of $162, or approximately 20%, between what landlords can charge under the Section 8 program and the typical market rate.
Given that the FMR exceeds the market rent, it presents an opportunity for landlords and small-portfolio investors to enhance their rental yields. Voucher tenants, who pay a portion of their income towards rent with the remainder covered by the government, ensure a stable and predictable cash flow. For instance, if a landlord charges the FMR of $810, they will receive a higher rent payment compared to the average market rate of $648. This makes the ZIP 71933 a compelling location for those looking to maximize returns through the Section 8 program.
The ZIP code has a rental population of 7.0%, indicating a relatively low demand for rental properties. However, the median home value stands at $251,119, suggesting that homeownership is a significant part of the local economy. Despite the lack of median income data, the higher FMR compared to the market rent ensures that landlords can still achieve better yields without pricing out potential tenants.
To summarize, the gap between the FMR and the market rent in ZIP 71933 makes it a favorable environment for landlords participating in the Section 8 program. It allows them to charge higher rents while maintaining tenant stability, thereby increasing their overall investment yield.
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.