Section 8 Fair Market Rent (FMR) for ZIP 72025 - 2027

Location: Yell County, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$900
2 Bedrooms	$1,040
3 Bedrooms	$1,390
4 Bedrooms	$1,640
5 Bedrooms	$1,902
6 Bedrooms	$2,130
7 Bedrooms	$2,300
8 Bedrooms	$2,415

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

834

Median Household Income

$65,341

Housing Units

445

Renter Percentage

24.3%

Occupancy Rate

86.1%

Renter Occupied

A landlord considering ZIP 72025 for Section 8 investment must follow a structured decision-making process. Here's how to proceed:

Does the Fair Market Rent (FMR) of $830 cover the debt service on a property valued at $176,564?
- If yes, the FMR is sufficient to meet monthly mortgage payments and other financial obligations.
- If no, the investment would not be financially viable under current conditions.
Is the market rent of $907 above, at, or below the FMR?
- If above, there is potential for higher returns but also greater competition from non-subsidized housing.
- If at, the market aligns closely with the FMR, indicating a stable rental environment.
- If below, the market rent suggests lower demand or competition, which could impact the desirability of Section 8 tenants.
Are 24.3% renters combined with an unspecified number of days as Days on Market (DOM) indicative of enough demand?
- If yes, the percentage of renters and the DOM suggest sufficient tenant interest.
- If no, the low percentage of renters or high DOM indicates weak demand.

The decision tree for ZIP 72025 hinges on these three points. With an FMR of $830, a landlord can expect that amount to be the maximum subsidy payment per unit. This figure must clear the debt service, which includes mortgage payments and other financing costs, on a property valued at $176,564. If it does, then the next step is to compare the FMR against the market rent of $907. A market rent above the FMR signals higher profitability but also increased competition from private rentals. At the FMR, the market is balanced, offering stability. Below the FMR, the market shows signs of weakness, potentially affecting the attractiveness of the area to Section 8 tenants.

Lastly, consider the demand. With 24.3% of the population being renters, there is a substantial portion of the market that could benefit from Section 8 subsidies. However, the Days on Market (DOM) being marked as 'N/A' means we lack specific data on how quickly properties are rented out. This ambiguity requires further investigation into local real estate trends to determine if there is enough demand to support a Section 8 investment. Should the DOM be relatively short, it would indicate strong demand; a long DOM would suggest otherwise.

In summary, the decision to invest in ZIP 72025 for Section 8 properties is contingent upon the FMR covering debt service, the relationship between market rent and FMR, and the strength of demand based on rental percentages and DOM. Each branch leads to a clear conclusion: yes, no, or it depends, based on the data presented.

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.