Location: Mississippi County, AR | Metro: Poinsett County, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $930 for ZIP 72386 in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $110,398. According to recent data from various financial institutions, the current 30-year fixed mortgage rate in Arkansas is around 6.55%. Applying this rate to a $110,398 home would result in a monthly mortgage payment of approximately $690 for principal and interest alone, assuming a typical down payment. This leaves a buffer of around $240 per month from the FMR, which could be used to cover property taxes, insurance, and maintenance costs.
The second objection is whether there is sufficient renter demand at 25.8%. This figure represents the percentage of households that are renters. While it is lower than the national average, it does indicate a stable rental market. However, the exact number of potential tenants is not specified in the data provided. To address this concern, landlords should focus on maintaining properties to meet the needs of the local market, ensuring they remain competitive and attractive to renters.
The final objection pertains to whether housing vouchers will keep pace with the market rents of $663. The data does not provide a direct comparison between voucher amounts and market rents for ZIP 72386. Generally, housing vouchers aim to cover a significant portion of rent but may not always match the exact market rate. Landlords should consider the benefits of accepting vouchers, such as guaranteed payments and a steady stream of qualified tenants, while also being aware of any administrative requirements.
In conclusion, the FMR of $930 provides a reasonable margin over the mortgage payment of around $690 for a home costing $110,398. The 25.8% rental rate suggests a stable market, though the exact number of potential tenants is unknown. Lastly, while vouchers may not fully cover the $663 market rent, they offer consistent income and tenant reliability. These points should be considered carefully when evaluating investment opportunities in ZIP 72386.
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.