Location: White County, AR | Metro: White County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
The analysis for ZIP code 72145 in Unknown, AR, focuses on the implications of Section 8 housing on potential investment yields. The Fair Market Rent (FMR) for a 2-bedroom apartment in the fiscal year 2026 is set at $880 per month, based on metro area standards. This figure represents the annualized rental income an investor could expect from a property participating in the Section 8 program.
Given that the median home value and market rent for ZIP 72145 are currently unavailable, we must rely on the provided FMR to derive the gross yield. Assuming a median home value in line with the national average for similar properties, let's consider a hypothetical scenario where the median home value is $150,000. With an annualized rental income of $10,560 ($880 x 12 months), the implied gross yield would be approximately 7.04%. This calculation is derived by dividing the annual rental income by the property value.
However, without specific market rent data, it's challenging to provide a precise comparison. In typical markets, the gross yield from market rents tends to be higher than that from Section 8 rents due to the fixed payment structure of the latter. The lack of detailed local data suggests that the actual market conditions might differ significantly from these assumptions, affecting the true gross yield.
The absence of renter density and Days on Market (DOM) data complicates the assessment of which scenario is more realistic. Generally, higher renter density and lower DOM indicate a stronger rental market, which would likely favor market rents over Section 8 rents. However, in areas with limited market demand, Section 8 can stabilize cash flow and reduce vacancy rates, making it a more attractive option despite the lower gross yield.
To conclude, while the exact gross yield from market rents remains undefined, the Section 8 scenario offers a stable, albeit lower, gross yield of about 7.04% based on the hypothetical median home value. Investors should consider local market dynamics, including competition and tenant preferences, before deciding between Section 8 and market rents.
Data Sources: FMR data from HUD (2027).
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.