Location: Montgomery County, AR | Metro: Montgomery 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 | $650 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $267,553 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 71957 centers around the significant gap between the Fair Market Rent (FMR) set at $880 for the fiscal year 2026 and the actual market rent reported at $519 based on Census ACS data. This gap stands at $361, which represents a 69.5% difference between the two figures. Given that the FMR exceeds the market rent, landlords and small-portfolio investors should view this discrepancy as an opportunity to generate higher yields.
Voucher tenants under the Section 8 program provide a consistent and reliable source of rental income, as the government covers any shortfall between the market rate and the FMR. In ZIP 71957, where only 21.8% of residents are renters, and the median home value is $238,469, landlords can capitalize on the lower proportion of rental units and the relatively high median home values to attract voucher holders willing to pay the higher FMR rates. The median income of $47,703 suggests that many residents might struggle to afford market rents, making them ideal candidates for Section 8 vouchers.
By participating in the Section 8 program, landlords can secure long-term tenancy at rates above the current market average, thus improving their cash flow and investment returns. This is particularly advantageous given the limited competition from other rental properties and the financial assistance provided by the government to cover the rent difference. Therefore, the gap between FMR and market rent makes ZIP 71957 a prime location for leveraging the Section 8 program to enhance rental yields.
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.