Location: Hot Spring County, AR | Metro: Hot Springs, AR MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $108,500 | 0.96% | C |
| 3BR | $1,390 | $182,593 | 0.76% | D |
| 4BR | $1,640 | $265,069 | 0.62% | D |
U.S. Census Bureau data (2024)
The ZIP code 72104 in Malvern, AR, presents a balanced market for landlords and small-portfolio investors. Based on the data from Redfin, the median sale price of a home in 72104 was $154,000 last month, down 1.9% since last year. This indicates a relatively stable market, but with slight downward pressure on home values.
In terms of yield, the Fair Market Rent (FMR) for ZIP 72104 in fiscal year 2024 is set at $830, while the average market rent is $767. Given that the median home value is $144,057, these figures suggest a modest positive cash flow potential for rental properties, especially when considering the FMR as a benchmark for rental income.
Regarding stability, the area has a 28.9% rental rate, indicating a moderate reliance on rental income. However, the lack of data on the average days on market (DOM) suggests that the turnover rate for rentals is not well documented, which could be a concern for investors seeking consistent cash flow. The median household income in the area is $54,774, which provides some insight into the economic stability of the tenant base.
Given these factors, ZIP 72104 is best classified as a steady-cashflow zone. While it does not offer the high yields typically associated with flip-style markets, it provides a reliable source of rental income with a reasonable level of stability. The slightly declining home values and modest rental rates indicate that this is neither a highly speculative nor a rapidly appreciating market, but rather a place where long-term rental investments can be expected to perform consistently.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.