Location: Cross County, AR | Metro: Poinsett County, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 72365 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, which has direct implications for landlords and small-portfolio investors. The FMR for ZIP 72365 in fiscal year 2024 is set at $810, while the Census American Community Survey (ACS) reports the market rent at $563. This means that the FMR is $247 higher than the market rent, representing an increase of approximately 43.9% over the market rate.
This disparity makes ZIP 72365 a prime location for a yield play strategy. Landlords can leverage the higher FMR payments to ensure a steady and above-average cash flow. Given that 38.8% of residents are renters and the median home value stands at $105,015, there is a strong demand for rental properties. Moreover, with a median income of $47,344, many residents are likely to qualify for housing vouchers, thus benefiting from the FMR subsidy.
The higher FMR not only compensates for the below-market rates but also provides an opportunity to achieve a better return on investment. For instance, if a landlord can secure a voucher tenant paying $810 per month, they will be able to outperform the average market rent of $563. This is particularly advantageous in a market where the majority of tenants might struggle to pay higher rents without financial assistance.
However, it's crucial to understand the cost implications of housing voucher tenants. While the FMR provides a higher payment threshold, the administrative burden and compliance requirements associated with voucher programs can affect overall profitability. Nonetheless, the gap between the FMR and market rent makes this a compelling investment opportunity for those willing to navigate the complexities of the Section 8 program.
In summary, ZIP 72365 offers a unique scenario where the FMR significantly exceeds the market rent, making it an attractive area for landlords and investors looking to capitalize on the yield play potential offered by housing vouchers. With the right approach, this gap can translate into a robust financial performance, especially considering the local economic conditions and high percentage of renters.
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.