Location: Mississippi County, AR | Metro: Mississippi County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
To assess the investment risk for Section 8 landlords in ZIP code 72395, we must first consider potential challenges. Tenant turnover is likely to be higher due to the discrepancy between the market rent of $1,000 and the Fair Market Rent (FMR) of $940 for fiscal year 2026 in the metropolitan area. This gap can lead to tenants seeking higher subsidies or moving to properties where their voucher covers a larger portion of the rent.
Vacancy exposure is another significant risk. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long a property might remain vacant. A prolonged vacancy can result in lost rental income and increased maintenance costs, especially if the property has been neglected. Deferred maintenance is also a concern, as the typical home value is not available, but the median household income is $78,507. While this income level suggests some financial stability among residents, it does not necessarily correlate with the ability or willingness of tenants to cover maintenance costs above the FMR.
Despite these risks, there are several factors that mitigate the overall risk profile. The renter share in ZIP 72395 is 27.4%, indicating a relatively high concentration of renters. High renter density typically translates into greater demand for housing vouchers, which can provide a steady stream of qualified tenants. Additionally, the presence of a substantial number of renters can ensure a consistent pool of applicants, reducing the likelihood of extended vacancies.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 72395 is moderate. While there are notable risks related to tenant turnover and vacancy exposure, the high renter share provides a solid foundation for attracting voucher holders, thereby balancing out the potential downsides.
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.