Location: St. Francis County, AR | Metro: Lee County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,120 |
| 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 potential risks for investing in Section 8 properties in ZIP code 72372 are significant. Firstly, tenant turnover could be high due to the discrepancy between the market rent of $805 and the Federal Market Rent (FMR) of $880 for fiscal year 2026 in the metropolitan area. Landlords should anticipate frequent changes in occupancy, which can lead to increased administrative costs and maintenance expenses.
Vacancy exposure is another concern. The Days on Market (DOM) for properties in this area is currently unknown, making it difficult to predict how long a unit might remain vacant. This uncertainty poses a financial risk, as landlords will need to cover mortgage payments and other expenses during periods of vacancy without the guaranteed rental income that Section 8 provides.
A third risk is deferred maintenance. With a typical home value of $130,411 and a median income of $43,611, many residents may struggle to afford necessary repairs and improvements. This could result in a higher demand for landlords to undertake these tasks, potentially increasing their financial burden and reducing profitability.
However, these risks must be weighed against the high concentration of renters in the area. The 23.7% renter share indicates a substantial number of potential voucher holders, suggesting a robust demand for affordable housing options. This high renter density usually translates into a steady stream of applicants, which can mitigate the risk of vacancy and provide a stable income source.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 72372 presents an opportunity for landlords willing to navigate these risks. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.