Location: Grant County, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area
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 | $960 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $131,559 | 0.84% | C |
| 3BR | $1,490 | $215,732 | 0.69% | D |
| 4BR | $1,790 | $262,618 | 0.68% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 72015 in Benton, AR, reveals some key insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom property in FY 2024 is set at $1,070 annually. This translates to a monthly rental income of approximately $89.17 under the Section 8 program. Given the median home value of $205,606 in the area, the implied gross yield for a Section 8 tenant would be around 5.2%, calculated as follows:
$1,070 / $205,606 = 0.0052 or 5.2%
In contrast, the market rent, represented by the Zillow Observed Rental Index (ZORI), stands at $1,253 per month. This higher figure suggests a more substantial gross yield of approximately 7.0% when annualized against the median home value:
$1,253 * 12 months / $205,606 = 0.071 or 7.0%
The difference between these two yields is significant, with the market rent scenario offering nearly 1.8 percentage points more in gross yield compared to the Section 8 scenario. However, the decision on which yield is more realistic hinges on several factors, including the local rental market dynamics and the proportion of renters in the area.
Benton, AR, has a renter density of 27.4%. This indicates that a considerable portion of the population is likely to be seeking rental housing, making it a competitive market. The N/A-day DOM (Days on Market) suggests that properties are either rented quickly or that data on rental listings is incomplete, which could mean that there's a high demand for rentals in the area. In such a context, landlords might find it challenging to fill vacancies with Section 8 tenants due to the lower rental rate compared to the market price.
While the Section 8 program provides stability and guaranteed income through government subsidies, the lower gross yield of 5.2% must be weighed against the higher market rent yield of 7.0%. For landlords looking to maximize returns, the market rent scenario presents a more lucrative opportunity. However, the choice should also consider the ease of finding tenants, the administrative overhead associated with the Section 8 program, and the overall financial goals of the investor.
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.