Location: Greene County, AR | Metro: Jonesboro, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 72405 reveals several challenges that potential Section 8 landlords should consider. First, tenant turnover is a significant concern. With a market rent of $1,644, tenants receiving the Federal Market Rent (FMR) subsidy of $940 may struggle to afford the difference, leading to higher turnover rates. This can be costly due to the time and expense involved in finding new tenants and preparing units for occupancy.
Vacancy exposure is another risk factor. The average days on market (DOM) for rental properties in this area is 78 days, which is relatively high. This extended period can result in lost rental income and increased holding costs for landlords. Furthermore, the lack of data on typical home values in the area suggests limited insight into property maintenance and repair trends, potentially exposing landlords to deferred maintenance issues. Given the median income of $92,440, it's unclear if residents have the financial capacity to maintain homes properly, which could lead to higher repair costs for landlords.
Despite these risks, there are factors that mitigate them. ZIP 72405 has a 27.1% renter share, indicating a high concentration of renters. This typically translates into strong demand for housing vouchers, which can stabilize rental income and reduce vacancy rates. Landlords who are willing to navigate the administrative requirements of the Section 8 program can benefit from a steady stream of qualified tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.