Section 8 Fair Market Rent (FMR) for ZIP 72034 - 2027

Investment Score for ZIP 72034

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$950
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,110	$159,965	0.69%	D
3BR	$1,490	$245,349	0.61%	D
4BR	$1,790	$380,542	0.47%	F
5BR	$2,076	$568,231	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 72034 (Conway, AR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 72034 is set by HUD for 2026, with the following rates: - 0BR: $990 - 1BR: $990 - 2BR: $1150 (which represents 21.0% of the median household income) - 3BR: $1540 - 4BR: $1830 To understand how these FMRs compare to actual rents, we can look at the Zillow median price for a 2BR property, which is $156,778. The price-to-FMR ratio for a 2BR unit is 11.4x, indicating that the median home value is significantly higher than the rent. This suggests that the actual rental market might be higher than the FMR, creating a constraint for voucher holders who can only pay up to the FMR rate. Given that the median household income is $65,635, the 2BR FMR of $1150 represents a substantial portion of the average income. This means that tenants using Section 8 vouchers must find landlords willing to accept a rent that is lower than what the market might charge. Additionally, the high price-to-FMR ratio indicates that landlords may face a challenge in finding profitability if they rely solely on FMR rates. #### Affordability & Renter Profile ZIP code 72034 has a population of 50,285, with 52.4% of residents being renters. This high percentage of renters suggests a strong demand for rental properties, making it a potentially tight market. However, the occupancy rate of 92.3% indicates that while there is a high demand, the supply is also relatively robust, keeping the market balanced but still competitive for both tenants and landlords. The median household income of $65,635 provides insight into the economic profile of the area. With 52.4% of residents renting, many of these individuals likely fall into the low-income category, making them potential candidates for Section 8 vouchers. The fact that the 2BR FMR is 21.0% of the median income highlights the affordability challenges faced by renters, particularly those relying on government assistance. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash flow-positive opportunities at the FMR rates. Given the high price-to-FMR ratio of 11.4x, it is clear that the purchase price of properties far exceeds the rental income that can be generated based on FMR. For instance, a 2BR property priced at $156,778 would generate a monthly rent of $1150, which is insufficient to cover mortgage payments, maintenance, and other expenses associated with owning a property in this area. The investment grade for this ZIP code would be considered low due to the significant gap between property values and FMRs. Investors focusing on Section 8 properties should be aware that the returns will be limited, and the primary benefit would come from the stability of government-backed rental income rather than high profit margins. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider smaller units such as 0BR or 1BR properties, where the FMR is $990. These units may offer better cash flow opportunities compared to larger units, although the competition for tenants may be higher. 2. **Target Lower-Income Neighborhoods**: Within ZIP code 72034, there may be pockets where the median income is lower than $65,635. Investing in these areas could provide a better match between property values and FMRs, potentially leading to more profitable investments. 3. **Consider Long-Term Rental Agreements**: To mitigate the risk of low rental income, investors could seek long-term rental agreements with Section 8 tenants. This would provide a stable source of income over a longer period, reducing the volatility associated with short-term leases. #### Bottom Line For investors focused on Section 8 properties, ZIP code 72034 presents a challenging environment due to the high price-to-FMR ratio and the limited profitability at FMR rates. Therefore, the recommendation for this ZIP code is to **Skip** unless you are looking for a stable, long-term investment with minimal profit expectations. The tight market and high renter percentage indicate a need for affordable housing, but the economics do not favor high returns on investment. In summary, while there is a significant demand for rental properties in Conway, AR, the financial dynamics make it less attractive for investors seeking to maximize returns through Section 8 vouchers.

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.