Location: Conway County, AR | Metro: Conway County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $630 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 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 Section 8 thesis for ZIP code 72127 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $880, while the Census ACS reports the average market rent at $763. This creates a gap of $117, or approximately 15.3%, where landlords can potentially benefit from higher rental income through Section 8 vouchers.
In this scenario, where the FMR exceeds the market rent, voucher tenants become an attractive option for landlords looking to maximize their yields. By participating in the Section 8 program, landlords can secure a higher monthly rent compared to what they would typically receive from non-voucher tenants. This makes it a strategic choice for increasing cash flow and investment returns in the area.
The ZIP code 72127 has a population where 16.3% are renters, and the median home value stands at $164,148. With a median income of $52,250, the affordability of housing becomes a significant concern for many residents. However, the higher FMR set by the government means that voucher holders can pay a rate closer to the $880 benchmark, which is above the typical market rate. This allows landlords to avoid the risk of renting below market rates, which could otherwise occur if they were to solely rely on the open-market demand.
To summarize, the analysis in ZIP 72127 indicates that landlords should consider the benefits of accepting Section 8 vouchers. The gap between the FMR and market rent provides an opportunity to achieve better yields without sacrificing occupancy rates. Moreover, the program ensures a steady stream of income from tenants who might otherwise struggle to afford housing 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.