Section 8 Fair Market Rent (FMR) for ZIP 71956 - 2027

Location: Hot Springs, AR | Metro: Hot Springs, AR MSA

Investment Score for ZIP 71956

N/A

Monthly Rent (2BR)

$990

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,260	$141,215	0.89%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,407

Median Household Income

$49,958

Housing Units

759

Renter Percentage

15.2%

Occupancy Rate

85.9%

Renter Occupied

A decision tree for considering the purchase of a property in ZIP 71956 for Section 8 investment starts with the Fair Market Rent (FMR) and moves through key financial and market metrics.

Step 1: Debt Service Coverage Ratio (DSCR)

The FMR for ZIP 71956 in fiscal year 2024 is $810. For a property valued at $121,613, you must determine if this FMR can cover the debt service. Assuming a typical mortgage rate and term, the monthly payment would be around $750. Therefore, the $810 FMR does clear the debt service, giving a positive DSCR. This means that the rent received would exceed the mortgage payments, making it financially viable to own a property under these conditions.

Step 2: Market Rent vs. FMR

The average market rent in ZIP 71956, according to the latest Census ACS data, is $641. This figure is below the FMR of $810. This indicates that there is potential for higher rental income when participating in the Section 8 program compared to the general market rent. Landlords can expect to receive the higher FMR rate, which benefits their bottom line.

Step 3: Rental Demand Analysis

In ZIP 71956, 15.2% of residents are renters. The occupancy duration (DOM) is listed as N/A, which suggests that there is insufficient data to make a determination on how long properties remain on the market before being rented. However, the percentage of renters provides insight into the demand for rental housing. Given that the market rent is below the FMR, the demand for Section 8 properties is likely to be strong. This means that landlords can expect a steady stream of qualified tenants applying for their properties.

Decision Tree Outcome

If your answer to Step 1 is yes, proceed to Step 2.
If your answer to Step 2 is that the market rent is below the FMR, proceed to Step 3.
If your answer to Step 3 is that the demand for rental properties is high (15.2% of residents are renters), then the answer to "Should I buy here for Section 8?" is Yes. The combination of an FMR that exceeds the debt service, a market rent that is lower than the FMR, and a sufficient percentage of renters indicates a favorable environment for Section 8 investments.

Note: The outcome could change if the DOM were significantly high, indicating difficulties in renting out properties quickly. However, with the current data, the investment looks promising.

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.