Location: Jefferson County, AR | Metro: Arkansas County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 72004 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $810. This figure is specific to this ZIP code, reflecting localized rental costs.
Local market rents, according to Census ACS data, average $608 for a two-bedroom unit. However, it's important to understand that the SAFMR is higher than the average market rent, which can be advantageous for landlords participating in the program.
A Section 8 voucher payment consists of two parts: the tenant contribution and the subsidy from the government. Tenants are generally required to pay 30% of their adjusted income towards rent. If we take the SAFMR as a reference point, a tenant would pay 30% of $810, which comes out to $243. The remaining amount, $567, is then subsidized by the government.
Utility allowances are also factored into the equation but vary based on individual circumstances. Typically, these allowances do not significantly alter the base rent subsidy. For simplicity, let’s assume the utility allowance remains within the standard range and does not impact the total rent calculation substantially.
Given the SAFMR of $810 and the average market rent of $608, landlords can expect a reimbursement that exceeds the local market rates. In this case, the government will cover the difference between the market rate and the SAFMR, ensuring that landlords receive the full $810 even if the market rent is lower.
To summarize, a landlord in ZIP 72004 can anticipate receiving a total of $810 per month for a two-bedroom unit. This includes $243 from the tenant and $567 from the government subsidy. Therefore, there is a surplus of $202 per month compared to the average local market rent of $608.
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.