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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $207,468 | 0.58% | F |
| 3BR | $1,550 | $311,538 | 0.5% | F |
| 4BR | $1,740 | $497,814 | 0.35% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 71968, located in Royal, Arkansas, within the Hot Springs, AR MSA, presents a favorable scenario for landlords and small-portfolio investors. The Federal Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1110, which is slightly above the current market rent of $1,080 according to the Census ACS. This indicates that properties can be rented out at rates that align closely with government subsidies, ensuring a steady income stream without significant financial strain.
Acquisition of properties in this area is also financially feasible. With a median home value of $284,815, potential investors can acquire homes at reasonable prices. Although the days on market (DOM) data is unavailable, the low 0.2% price-cut share suggests that homes are generally selling close to their asking prices, indicating a strong seller's market where homes do not linger unsold or require substantial discounts to attract buyers.
Tenant demand is another critical factor. With a population of 4,437, and 20.1% of residents being renters, there is a consistent pool of tenants available. This percentage translates to approximately 892 individuals who are actively seeking rental housing, providing a stable base for occupancy.
Verdict: ZIP 71968 offers a solid investment opportunity for landlords and small-portfolio investors. The alignment between the FMR and market rent ensures viable rental income, while the median home value and strong seller's market dynamics make property acquisition affordable. Tenant demand, though limited by the smaller population size, remains sufficient to maintain occupancy levels. Overall, the conditions support a positive outlook for rental property investments in this area.
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.