Location: Cross County, AR | Metro: Cross County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $880 for ZIP 72373 in fiscal year 2026 will sufficiently cover the mortgage on an average-priced home. According to recent data, the average home price in ZIP 72373 is approximately $56,064. However, the data does not provide the average mortgage amount for homes in this ZIP code. Therefore, we cannot definitively state if the FMR will cover the mortgage without knowing the interest rates and loan terms.
The second objection could be regarding the renter demand at 41.5%. While the percentage of renters in ZIP 72373 is relatively low, it still represents a significant portion of the housing market. The population of the area is slightly over 600 people, and the number of households is around 422. With 41.5% of these households being renters, there is a steady demand for rental properties. This demand is further supported by the fact that the town is small and peaceful, which can attract individuals seeking affordable and quiet living conditions.
Finally, an investor might wonder if housing vouchers will keep pace with the market rents of $525. Unfortunately, the data provided does not specify the current voucher utilization rate or the average amount of housing vouchers in ZIP 72373. Without this information, it's challenging to predict whether vouchers will cover the market rents. However, the average gross rent in 2024 was $530, indicating that the voucher amounts must be close to or above this figure to support the existing rental market.
In summary, while the FMR of $880 and the average market rent of $525 suggest a viable investment opportunity in ZIP 72373, more detailed financial data is needed to make definitive claims. The 41.5% renter demand is a positive indicator for the stability of rental income, and the voucher system likely plays a crucial role in supporting this market.
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.