Location: Cleburne County, AR | Metro: Cleburne County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 72130 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area as of fiscal year 2026 is set at $880. However, the market rent for the area is not available, which poses a challenge for a direct comparison. Given that we do have the FMR, it's important to understand what this means for landlords and small-portfolio investors.
In ZIP 72130, only 0.0% of residents are renters, indicating a primarily owner-occupied market. The median income in the area stands at $87,014, which is significantly higher than the FMR. This suggests that the potential rental market is limited, but for those interested in Section 8 properties, the implications are clear.
If the FMR exceeds the actual market rent, landlords can capitalize on the yield play by renting to voucher tenants. These tenants pay their portion of the rent, typically 30% of their income, while the government covers the remainder up to the FMR. In such a scenario, landlords can expect a stable and guaranteed income stream without the risk of vacancy. The government's payment ensures a steady cash flow, even if the overall market rent is lower than the FMR.
Conversely, if the FMR is less than the market rent, landlords must consider the cost of accepting housing vouchers. The government pays up to $880 per unit, meaning landlords would have to accept a rate below the open-market price. This could result in a lower profit margin compared to non-voucher tenants who might be willing to pay more. However, the stability of government-backed payments can offset the risk of having vacant units, especially in an area where the rental market is not robust.
While the median home value is not specified, the high median income suggests that residents are financially capable of owning homes rather than renting. Therefore, landlords should carefully weigh the benefits of a stable tenant base against the potential for higher rents from non-voucher tenants. The decision to participate in the Section 8 program should be based on the specific financial goals and risk tolerance of the landlord or investor.
To summarize, the FMR of $880 in ZIP 72130 is the benchmark for rental assistance. Landlords must decide whether to leverage this for a guaranteed income or seek out the potentially higher rates of the open market, keeping in mind the limited rental population and the overall economic conditions of 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.