Location: Jonesboro, AR | Metro: Jonesboro, AR HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $165,424 | 0.66% | D |
| 3BR | $1,430 | $229,971 | 0.62% | D |
| 4BR | $1,440 | $348,660 | 0.41% | F |
| 5BR | $1,670 | $529,438 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 72404, located in Jonesboro, AR, presents a clear financial gap for landlords and small-portfolio investors. The Fair Market Rent (FMR) for FY 2024 is set at $1010, while the actual market rent, measured by ZORI, stands at $1524. This means that there is a discrepancy of $514 per month, or approximately 33.7%, between what the government will pay through vouchers and what landlords could potentially earn from market-rate rentals.
In Jonesboro, where 36.3% of residents are renters, the median home value is $262,725 and the median income is $70,269. Given these economic conditions, the lower FMR compared to the market rent indicates that landlords accepting Section 8 vouchers will be renting properties at a rate significantly below the open-market value. This scenario can result in a net loss or reduced profit margins for landlords who rely solely on rental income to cover property costs such as maintenance, utilities, and mortgage payments if they have a loan on the property.
The cost of housing voucher tenants below open-market rates is a critical consideration for landlords. While the security of a government-backed payment can be attractive, the financial gap must be addressed to ensure profitability. Landlords should consider the long-term benefits of stable tenancy and the potential for property appreciation in the area when evaluating the decision to accept Section 8 vouchers. Additionally, understanding the local rental market and the demographics of Jonesboro can help in making informed choices about tenant selection and property management strategies.
To summarize, the difference between the FMR and the market rent in ZIP 72404 highlights the financial challenges and opportunities associated with the Section 8 program. For a landlord or small-portfolio investor, this gap represents a monthly shortfall of $514, or 33.7%, which must be factored into their investment strategy. Despite the lower rental income, the program offers the benefit of guaranteed payments, which can be particularly appealing in a market with high vacancy rates or economic instability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.