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 | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
U.S. Census Bureau data (2024)
To integrate ZIP 71970 into a Section 8 portfolio strategy, consider it primarily as a diversifier. This classification is based on the available data, which indicates that the area has a 7.8% renter share and a median income of $71,667. These figures suggest that while the area is not dominated by renters, it still offers a significant portion of potential Section 8 tenants. The presence of a diverse economic base, with a relatively high median income, can help stabilize a portfolio by reducing reliance on any single demographic.
The lack of specific market and median home value data for ZIP 71970 means that assessing it purely as a cash-flow anchor or an appreciation play is challenging. However, the Fair Market Rent (FMR) for the Montgomery County, AR metro area for fiscal year 2026 is set at $880. This figure serves as a benchmark for rental rates that landlords can charge to tenants participating in the Section 8 program. While the absence of comparable market data makes it difficult to calculate the exact spread between FMR and market rents, the stable FMR can provide consistent cash flow, albeit with less emphasis on immediate profitability compared to areas where market rents significantly exceed FMR.
ZIP 71970's median income of $71,667 also supports its role as a diversifier. Higher median incomes often correlate with lower vacancy rates and fewer delinquencies, as residents have more financial flexibility. Additionally, the economic diversity implied by this income level can attract a mix of tenants, including those who do not rely solely on government assistance, thus spreading risk across different income brackets.
In conclusion, ZIP 71970 should be viewed as a diversifier within a Section 8 portfolio strategy. It offers a moderate renter share and a relatively high median income, which can contribute to a balanced and stable investment portfolio. Landlords and small-portfolio investors looking to mitigate risk and ensure steady cash flow should find this ZIP code a valuable addition to their holdings.
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.