Location: Jefferson County, AR | Metro: Arkansas County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 72175 reveals a unique balance between yield and stability, making it an interesting market for both landlords and small-portfolio investors.
Starting with yield, the Fair Market Rent (FMR) for ZIP 72175 is set at $990 for fiscal year 2024. This figure is notably lower than the market rent of $1,104, indicating that there is potential to achieve higher rental yields compared to the FMR. However, the absence of a median home value suggests that purchasing properties for rental purposes might be challenging due to limited data on property prices. For existing landlords, this means they can potentially charge above the FMR to maximize their rental income.
Moving on to stability, the ZIP code has a 34.3% rental rate, which is significant but not overwhelmingly high. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties can be rented out. However, the average household income of $38,167 provides insight into the financial capacity of residents. While this income level is relatively modest, it still supports the current market rent, suggesting that tenants can afford the rent without extreme difficulty.
To classify ZIP 72175, it does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it occupies a middle ground. The ability to charge above the FMR ($1,104 vs $990) indicates a decent yield potential, especially for those who already own properties in the area. However, the modest income levels and the relatively high rental rate imply some risk in terms of tenant turnover and payment reliability, though not at crisis levels.
In conclusion, ZIP 72175 presents opportunities for landlords looking to generate above-average rental income while acknowledging the need for careful management to maintain stable occupancy rates. It is neither a speculative nor a purely conservative investment zone but rather a balanced market where strategic decision-making can lead to positive outcomes.
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.