Location: Phillips County, AR | Metro: Phillips County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The classification of ZIP code 72389 hinges on its unique blend of yield potential and market stability. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910. This FMR figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, making it a critical benchmark for rental income potential. In contrast, the market rent stands at $322, indicating a significant disparity where the government-subsidized rent is nearly three times higher than the typical market rate. This suggests a high-yield environment for landlords participating in the Section 8 program.
Regarding stability, ZIP 72389 shows a robust percentage of renters at 51.9%. This high proportion of tenants indicates a consistent demand for rental properties, which is beneficial for maintaining steady cash flow. However, the lack of data on days on market (DOM) suggests some uncertainty in the turnover rate of rental units, potentially impacting the overall stability. The median household income is reported at $21,528, which is relatively low and could affect the ability of residents to pay rent consistently without subsidy.
Based on these figures, ZIP 72389 appears to be a high-yield/low-stability market. The substantial difference between the FMR and the market rent supports the high-yield designation, as landlords can achieve significantly higher rents through the Section 8 program compared to what they might get in the open market. The low stability comes from the combination of unknown DOM figures and lower median incomes, which could lead to higher vacancy rates or difficulties in collecting rent outside of the subsidy program. For small-portfolio investors and landlords looking to maximize their returns while accepting a bit more risk, this market offers an attractive opportunity.
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.