Location: White County, AR | Metro: White County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 72085 presents a unique challenge due to the lack of median home value data. However, we can still derive some insights using the available figures.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 72085 for fiscal year 2026 is set at $910 per month. This figure represents the annualized rental income that a landlord could potentially receive if they participate in the Section 8 program. To calculate the implied gross yield based on the FMR, we need the median home value. Since this data is not available, we cannot provide an exact percentage for the gross yield under the Section 8 scenario. However, the annualized income from a 2BR unit would be $10,920 ($910 x 12 months).
In contrast, the market rent for a 2-bedroom apartment in ZIP 72085, according to the Census ACS data, is $775 per month. This translates to an annualized market rent of $9,300 ($775 x 12 months). Again, without the median home value, we cannot compute the precise gross yield. Nonetheless, it is evident that the Section 8 FMR provides a higher annual income compared to the market rent.
Given the 24.4% renter density in ZIP 72085, it's important to consider the implications for both scenarios. A lower renter density suggests a smaller pool of potential tenants, which could affect the demand for rental properties. The N/A-day Days on Market (DOM) indicates incomplete data, making it difficult to assess the speed at which rental units are typically filled. However, assuming that the Section 8 program has a steady flow of applicants, the FMR scenario might offer more stability and a higher income stream compared to the volatile nature of the private rental market.
Despite the higher income potential from the Section 8 program, landlords should weigh the benefits of a guaranteed tenant against the administrative burden and potential delays in receiving payments. The market rent scenario, while offering less income, may provide greater flexibility and fewer regulatory constraints.
In summary, the Section 8 FMR of $910 per month offers a higher annual income of $10,920 compared to the market rent of $775 per month, which annualizes to $9,300. The choice between these two scenarios depends largely on the landlord's tolerance for administrative processes and their assessment of local rental market dynamics.
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.