Location: Phillips County, AR | Metro: Lee County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The ZIP code 72374, located in Arkansas, presents a unique challenge for both renters and landlords due to limited data on median income and market rental rates. However, analyzing the available figures provides insight into the local rental market dynamics.
A household in ZIP 72374 would struggle to afford the rental market rate, which is currently unreported but can be gauged against the Fair Market Rent (FMR) standard used for Housing Choice Vouchers. The FMR for the metro area in fiscal year 2026 is set at $910, indicating that even if the market rate were to match this figure, it might still pose a financial strain given the lack of reported median income.
The ZIP code has a relatively high percentage of renters at 38.2%, with a total population of 562. This suggests a significant portion of the community relies on rental housing. In such a scenario, the affordability gap between potential market rates and the FMR could lead to increased competition among landlords. Those who offer units at or near the FMR level will attract tenants who receive vouchers, ensuring steady occupancy.
Landlords in ZIP 72374 must consider the trade-offs between accepting voucher payments versus relying on cash-paying tenants. While voucher recipients provide guaranteed rent through government subsidies, landlords may face administrative complexities and restrictions. On the other hand, cash-paying tenants offer flexibility but require units priced competitively within an uncertain market rate environment.
The takeaway for landlords is clear: understanding the local demand for affordable housing and the prevalence of voucher usage is crucial. Landlords should prepare to either navigate the voucher system, leveraging the $910 FMR to secure tenants, or strategically price their units to attract cash-paying renters in a market where affordability is a significant concern. Balancing these approaches will be key to success in ZIP 72374.
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.