Section 8 Fair Market Rent (FMR) for ZIP 71960 - 2027

Location: Montgomery County, AR | Metro: Montgomery County, AR

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$670
1 Bedroom	$820
2 Bedrooms	$930
3 Bedrooms	$1,190
4 Bedrooms	$1,300
5 Bedrooms	$1,508
6 Bedrooms	$1,689
7 Bedrooms	$1,824
8 Bedrooms	$1,915

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,144

Median Household Income

$66,917

Housing Units

673

Renter Percentage

11.6%

Occupancy Rate

61.4%

Renter Occupied

The economics of Section 8 housing in ZIP code 71960 are governed by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment in FY 2026, the SAFMR is $900. However, the local market rent, according to the Census ACS, is $631. This discrepancy between the SAFMR and the actual market rent can impact the financial decisions of landlords and small-portfolio investors.

A Section 8 voucher works by covering the difference between what a tenant can afford and the rent of a qualifying unit. The tenant's contribution is generally 30% of their adjusted income, and the rest is subsidized by the government. In ZIP 71960, if we consider the SAFMR of $900, the tenant would typically pay about $270 based on the average income levels, leaving the remainder to be covered by the voucher program.

To illustrate further, let's break down the components of the reimbursement:

Tenant Portion: Approximately $270 per month, which is 30% of the median income for a household in this area.
Voucher Subsidy: The voucher will cover the remaining amount up to the SAFMR of $900, which is $630 in this case.
Utility Allowances: These vary but are often included in the voucher payment structure. Assuming an average utility allowance of $100, the total monthly reimbursement a landlord might receive could be around $730 ($630 + $100).

Given the local market rent of $631, the typical reimbursement for a two-bedroom unit would exceed the market rate by approximately $99 per month. This surplus can provide landlords with additional financial stability, even though the reimbursement rate is tied to the SAFMR rather than the actual market conditions.

In conclusion, while the SAFMR sets the maximum reimbursement at $900 for a two-bedroom unit, the actual local market rent is significantly lower at $631. Landlords participating in the Section 8 program for 2BR units in ZIP 71960 can expect a reimbursement that exceeds the local market rent by about $99 per month, ensuring they are not financially disadvantaged compared to renting without a voucher.

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.