Location: Jefferson County, AR | Metro: Grant County, AR HUD Metro FMR Area
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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $140,041 | 0.65% | D |
| 3BR | $1,200 | $229,893 | 0.52% | F |
| 4BR | $1,470 | $328,847 | 0.45% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 72150 (Sheridan, AR, Jefferson County, AR metro) does not work favorably for landlords. The Fair Market Rent (FMR) set at $890 for FY 2024 is notably higher than the current market rent of $793 according to Census ACS data. This discrepancy suggests that landlords may struggle to find tenants willing to pay the higher subsidized rates.
Acquisition in this area is relatively affordable. With a median home value of $218,774, potential investors can secure properties without excessive financial strain. However, the lack of data on days on market (DOM) and the low 0.3% price-cut share indicate a stable but possibly slow-moving market. Landlords should be prepared for potentially longer periods between listing and sale.
Tenant demand is moderate. Sheridan has a population of 12,337, with 21.9% of residents being renters. This means approximately 2,695 individuals are actively seeking rental housing. While this is a reasonable number, it's essential to consider the competition from other rental properties and the potential for vacancies due to the mismatch between FMR and market rent.
Verdict: ZIP 72150 presents a mixed picture for small-portfolio investors. The affordability of acquisitions is a positive aspect, but the current market conditions, including lower-than-FMR rents and moderate tenant demand, suggest caution. Investors should carefully assess their ability to attract tenants willing to pay the higher FMR rate and be prepared for competitive challenges and possible vacancy issues.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.