Location: Arkansas County, AR | Metro: Arkansas County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The ZIP code 72038, located in Arkansas, presents a unique real estate investment scenario when analyzed through the lens of Section 8 yields and market stability. To begin, let's dissect the yield potential. The Fair Market Rent (FMR) for a metro area like this one is set at $1,000 per unit for fiscal year 2026. This figure represents the maximum rent that a landlord can charge for a Section 8 rental agreement, which is crucial for determining the profitability of properties in this region.
Moving on to stability indicators, we find that the ZIP code has a 0.0% share of renters who are likely to be participating in the Section 8 program. While this might initially seem concerning, it's important to note that the median household income in the area is $63,472. This suggests that there is a reasonable economic base supporting the local rental market, even if it's not heavily reliant on Section 8 tenants. Additionally, the Days on Market (DOM) figure is not available, which could indicate either a very active or a very slow-moving market, but without specific data, we cannot make a definitive call.
Given these factors, ZIP 72038 does not fit neatly into the high-yield/low-stability flip-style market category nor the steady-cashflow zone. Instead, it appears to occupy a middle ground. The guaranteed rental income of $1,000 per unit through Section 8 agreements provides a stable revenue stream for those willing to participate in the program. However, the lack of significant Section 8 participation among renters means that landlords must rely on other sources of rental demand, which can introduce some volatility.
To conclude, while the yield from Section 8 rentals is clear and fixed at $1,000 per unit, the overall stability of the market in ZIP 72038 is somewhat ambiguous due to the missing market and DOM data. The economic profile, with an average income of $63,472, suggests that there is a solid foundation for rental demand, but the absence of detailed rental market data makes it difficult to assess the true stability of this investment opportunity. Landlords should consider this ZIP code as a moderate-risk investment with a predictable income floor provided by Section 8 contracts.
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.