Location: Woodruff County, AR | Metro: Cross County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
ZIP code 72101 is a part of the Fayetteville, AR metro area, characterized by a modest population of 3,019 residents. This neighborhood stands out with a rental rate of 30.8%, indicating a significant portion of the community opts for renting over homeownership. The median household income here is $50,921, which places it within a comfortable range for many families, yet not exceedingly high. The median home value in ZIP 72101 is $107,905, reflecting an affordable housing market that could appeal to first-time buyers and those looking for budget-friendly living options.
Moving into the economic dynamics of renting, the Fair Market Rent (FMR) for the metro area, as of fiscal year 2026, is set at $910. However, the actual market rent, according to Census ACS data, is notably lower at $605. This discrepancy between the FMR and the market rent suggests a potential opportunity for landlords who can leverage the difference to attract Section 8 tenants without significantly compromising their profit margins.
The question then arises: is ZIP 72101 better suited for a hands-off voucher operator or a hands-on value-add buyer? Given the relatively low median home value and the gap between FMR and market rent, this area leans towards being more attractive for a hands-on value-add buyer. Such an investor could focus on improving properties to command rents closer to the FMR, thereby maximizing returns while still remaining competitive in the local market. For those inclined towards a hands-off approach, the lower market rent provides a straightforward path to securing tenants through the Section 8 program, ensuring steady but potentially less lucrative cash flows.
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.