Location: Hot Spring County, AR | Metro: Hot Spring County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
ZIP 71941, located in Hot Spring County, AR, serves as a critical component in a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. The Fixed Monthly Rent (FMR) for the metro area in fiscal year 2026 is set at $980, which is notably higher than the current market rent of $910. This $70 spread ensures that properties in ZIP 71941 will generate a consistent and reliable cash flow, significantly above the market average.
The median home value in this ZIP code is currently not available, but this does not detract from its role as a cash-flow anchor. Landlords and small-portfolio investors can rely on the guaranteed income from Section 8 tenants, which is adjusted annually based on the FMR. In this case, the FMR provides a cushion against market fluctuations, ensuring that rental income remains stable and predictable.
While appreciation plays and diversifiers are also important elements in any investment strategy, ZIP 71941's primary value lies in its ability to provide a solid foundation for cash flow. The percentage of price-cut share and days on market (DOM) are not applicable here, as they do not directly impact the cash flow generated by Section 8 properties. Instead, the focus should be on the strong renter share of 15.7%, indicating a significant portion of the population relies on rental housing. Additionally, the median income of $70,329 suggests that there is sufficient economic stability to support the Section 8 program without major disruptions.
In summary, ZIP 71941 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its higher FMR compared to the market rent guarantees a steady and reliable income stream, making it an ideal choice for investors looking to stabilize their financial returns amidst market volatility.
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.