Location: Pike County, AR | Metro: Hot Spring 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 | $690 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $228,949 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 71943 presents a unique scenario for real estate investment, particularly for those interested in Section 8 properties. The analysis of yield and stability reveals a market that is neither purely high-yield nor low-stability but rather a blend of both characteristics.
Yield Analysis: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 stands at $900, which is higher than the market rent of $694. This indicates that there is potential for higher rental income when participating in the Section 8 program. However, the median home value in ZIP 71943 is significantly higher at $196,239, which suggests a relatively expensive acquisition cost for properties in this area. The disparity between the FMR and the market rent implies that investors could benefit from the higher subsidies offered through the Section 8 program, thus achieving a better yield compared to non-subsidized rentals.
Stability Analysis: Stability can be gauged by the percentage of renters, the average number of days on the market (DOM), and the median household income. In ZIP 71943, 35.1% of residents are renters, which is a moderate figure. The lack of data on the average DOM makes it difficult to assess the ease of property turnover, though it does not necessarily indicate instability. Median household income in the area is $44,904, which is relatively low and could suggest a less stable tenant base due to potential financial volatility among residents.
Given these factors, ZIP 71943 leans towards being a steady-cashflow zone. While the higher FMR provides an opportunity for better yields, the significant gap between the FMR and market rent, along with the low median income, points towards a market where tenants might struggle to keep up with rents outside of the Section 8 program. Additionally, the moderate rental rate indicates a balance between risk and reward, suitable for investors looking for consistent returns without the high volatility associated with purely speculative investments.
To summarize, the higher FMR compared to the market rent and the low median income make ZIP 71943 a market with potential for steady cash flow, especially for those willing to participate in the Section 8 program. The yield is favorable, and the stability, while not optimal due to lower incomes, still supports a conservative investment strategy.
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.