Location: Hot Springs, AR | Metro: Hot Springs, AR MSA
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 | $910 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $97,690 | 1.19% | B |
| 3BR | $1,500 | $211,322 | 0.71% | D |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 housing in ZIP code 71949, which covers Jessieville, AR, and is part of Garland County, you need to know the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1010. This figure is specifically tailored to the conditions within ZIP 71949 and does not reflect broader county or metropolitan averages.
The SAFMR is the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay to cover the rent for a tenant under the Section 8 program. However, the actual payment to landlords is calculated differently. It includes both the tenant's contribution and the utility allowance. Tenants are typically required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1683 per month (the figure used by HUD for calculating the tenant's share), the tenant would contribute about $505 towards rent.
The remaining amount is covered by the Section 8 voucher, but it cannot exceed the SAFMR. In this case, the voucher would pay up to $505 to make up the difference between the tenant's contribution and the SAFMR. Additionally, there is a utility allowance that varies based on the size of the unit and the region. For a two-bedroom apartment in this area, the utility allowance is approximately $280.
Therefore, the total reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom apartment is the sum of the tenant's contribution and the voucher payment, plus the utility allowance. In ZIP 71949, this totals to about $785. Given the SAFMR of $1010, landlords would face a shortfall of $225 per month if they were to charge the full SAFMR rate. This means that landlords must either accept a lower rent than the market might allow or find ways to reduce costs to remain financially viable.
Note that the local market rent for ZIP 71949 was not provided, which could affect the attractiveness of renting to Section 8 tenants. However, based on the available data, the economic reality for landlords is a reimbursement gap when charging the full SAFMR for a two-bedroom unit. The gap stands at $225 per month, indicating landlords must carefully manage their properties to ensure profitability.
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.