Location: Montgomery County, AR | Metro: Montgomery County, AR
| 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 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 71961 focuses on the significant gap between the Fair Market Rent (FMR) of $920 and the market rent of $625 as reported by the American Community Survey (ACS). This gap amounts to $295, or approximately 47.2%, indicating that voucher tenants can afford to pay substantially more than the open-market rate.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should consider this a yield play. Accepting Section 8 voucher tenants can provide a more stable and predictable cash flow compared to the open market. The higher payment standard allows for rents that are closer to the 40th percentile of the local rental market, ensuring that landlords receive a fairer share of the rent they could potentially charge in the open market.
In ZIP 71961, 23.2% of residents are renters, and the median household income is $37,054. While the median home value is not available, the disparity between FMR and market rent suggests that voucher tenants have more purchasing power than typical market-rate renters. This makes properties more attractive to voucher holders who can leverage their vouchers to cover a larger portion of the rent.
To summarize, the gap between FMR and market rent in ZIP 71961 presents an opportunity for landlords to achieve higher yields by accepting Section 8 tenants. The voucher system effectively subsidizes rents, making them more aligned with the 40th percentile of the local rental market, rather than the lower market rent observed in the ACS data.
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.