Location: Hot Spring County, AR | Metro: Grant County, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
The ZIP code 72128 presents a unique opportunity for real-estate investors, particularly those interested in Section 8 properties. With a Fair Market Rent (FMR) of $1070 for Fiscal Year 2024, compared to the market rent of $950, there is a clear indication that this area could offer above-market yields for Section 8 properties.
To understand the potential returns, consider the FMR set at $1070, which is higher than the market rent. This suggests that landlords who qualify for Section 8 can expect to receive a subsidy that brings their total rental income above the local market rate, thus providing a higher yield. The difference of $120 per month is significant and can contribute to better financial outcomes for landlords.
Moving on to stability, the ZIP code has a substantial 24.8% of residents who are renters. While the number of days on the market (DOM) is not available, the median household income stands at $65,938. This figure is crucial because it indicates the economic health of the area and the ability of residents to afford housing. A higher income level generally correlates with lower default rates and more stable tenancy.
Given these factors, ZIP 72128 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The above-market yield from Section 8 subsidies combined with the relatively high median income suggests that while the returns might be slightly higher due to the rental assistance, the risk of tenant instability is mitigated by the economic conditions of the area.
However, the lack of data on the number of days on the market and home values means that some aspects of the investment climate remain unclear. Landlords should conduct further research into these areas to fully assess the risks and rewards of investing in ZIP 72128.
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.