Location: Greene County, AR | Metro: Greene County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The analysis of Section 8 properties in ZIP code 72412 reveals a significant opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $920, while the current market rent remains unspecified, suggesting a potential undervaluation of the rental market in this area.
In ZIP 72412, only 0.0% of residents are renters, indicating a predominantly owner-occupied community. This could imply that rental demand is low, which might be contributing to the lack of updated market rent data. However, the median income in this ZIP code stands at $83,500, providing a strong financial foundation for potential renters who could qualify for Section 8 vouchers. Despite the absence of a specified market rent, the FMR serves as a benchmark for what landlords can expect to receive from voucher holders.
Given the high median income and the low percentage of renters, the gap between the FMR and the market rent, if it exists, could be substantial. For instance, if the market rent were significantly higher than the FMR, accepting Section 8 tenants would mean foregoing additional income. Conversely, if the market rent is lower or equivalent to the FMR, landlords could leverage the guaranteed payment structure of Section 8 vouchers to secure steady cash flow and mitigate the risk associated with fluctuating market conditions.
The cost of housing voucher tenants below open-market rates is minimal in this scenario, given the strong local economy and the high median income. Landlords should consider the stability and predictability of Section 8 payments versus the volatility of the open-market rental rates. Additionally, the median home value being unspecified suggests that there might be limited data on property values, which could affect the overall investment strategy in this area.
To conclude, the gap between the FMR and the market rent in ZIP 72412 is a critical factor for landlords and small-portfolio investors. With an FMR of $920 and a strong median income, the potential benefits of accepting Section 8 tenants include stable rental income and reduced vacancy risks, making it a strategic move in this particular market.
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.