Location: Arkansas County, AR | Metro: Arkansas County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 72042 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $880 for fiscal year 2026. This figure represents the maximum amount the housing authority will pay for a two-bedroom rental unit in this specific ZIP code.
In contrast, the local market rent for a two-bedroom unit in ZIP 72042 is $825, according to the latest Census ACS data. This means that the SAFMR is slightly higher than the average market rent, which could be beneficial for landlords participating in the program.
A Section 8 voucher works by covering the difference between what a low-income tenant can afford and the actual rent of the property. The tenant's portion is typically 30% of their adjusted income, and there are additional utility allowances that vary based on the size of the unit and the location.
For a two-bedroom unit, let's assume a tenant's portion is $247.50 (30% of a median household income of $8,250 per month, which is derived from the $825 average market rent). If we add an estimated utility allowance of $100 to this, the total monthly payment to the landlord would be $347.50.
The housing authority then covers the remaining balance up to the SAFMR. In this case, they would pay $532.50 ($880 - $347.50) to the landlord. Therefore, the total reimbursement to the landlord would be the sum of the tenant's contribution and the housing authority's subsidy, totaling $880.
This results in a surplus for the landlord since the local market rent is lower than the SAFMR. The surplus is calculated as follows: $880 (total reimbursement) minus $825 (local market rent), which equals $55 per month. This means landlords in ZIP 72042 can expect to receive $55 more than the average market rent for a two-bedroom unit when renting to a Section 8 tenant.
To summarize, landlords should understand that the SAFMR sets the maximum reimbursement for a two-bedroom unit at $880, while the local market rent is $825. With the tenant paying approximately $247.50 and receiving a utility allowance of around $100, the housing authority will cover the rest. As a result, landlords can anticipate a surplus of $55 per month for a two-bedroom unit in ZIP 72042.
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.