Location: Cleveland County, AR | Metro: Grant County, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 72057 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1040 per month for the fiscal year 2024. This figure is crucial because it directly influences the maximum amount that a Section 8 voucher will cover for such an apartment.
While the local market rent is not available, understanding the SAFMR is essential for landlords. The voucher system operates on a principle where the tenant pays a portion of their income towards rent, typically 30% of their adjusted monthly income. The remainder, up to the SAFMR limit, is paid by the housing authority. For instance, if a tenant's share is $500, the housing authority would cover the difference, up to the $1040 SAFMR.
In addition to the base rent, there are utility allowances. These allowances vary but are generally set to help cover the cost of utilities, which can be significant. If we assume a utility allowance of $150, this would be added to the housing authority’s payment, making the total reimbursement $650 ($500 tenant share + $150 utility allowance).
This means that for a landlord in ZIP 72057, the actual reimbursement received from a Section 8 voucher for a two-bedroom unit would be the tenant's share plus the utility allowance, capped at the SAFMR of $1040. Therefore, if the market rent were higher than $1040, there would be a reimbursement gap, where the landlord does not receive the full market rent. Conversely, if the market rent is lower than $1040, the landlord might receive the full market rent, plus some additional surplus from the voucher program.
To illustrate, if the market rent for a two-bedroom in ZIP 72057 was $1200, the landlord would face a reimbursement gap of $160 ($1200 - $1040), since the housing authority will only pay up to the SAFMR. However, if the market rent is $900, the landlord would receive the full $900 plus the utility allowance of $150, resulting in a surplus of $190 ($1040 - $900 + $150).
In conclusion, landlords must be aware of the SAFMR when considering participation in the Section 8 program. Given the SAFMR of $1040 for a two-bedroom in ZIP 72057, the reimbursement gap or surplus will depend on the actual market rent for similar units in the area.
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.