Location: Randolph County, AR | Metro: Clay County, AR
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 | $680 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $128,643 | 0.94% | C |
U.S. Census Bureau data (2024)
ZIP code 72422 has a population of 4,324 residents, with 22.5% identified as renters. This indicates that while there is a notable segment of renters, the majority of the population still tends towards homeownership. The median household income stands at $56,507, which provides context for the affordability of housing in the area.
The average market rent for the area is $689 per month. To understand the financial burden this places on local renters, we can calculate that the typical rent eats up approximately 12.2% of the median household income. This percentage is derived by dividing the monthly rent by the annual income and multiplying by 12 (months): ($689 / $56,507) * 12 = 12.2%. This suggests that renting is relatively affordable compared to the income levels of the residents.
However, when comparing the market rent to the Fair Market Rent (FMR) set by HUD, which is $880 for the fiscal year 2026 in the metro area, it becomes evident that the actual market rent is below the FMR. This discrepancy could be due to various factors including the local economy, housing supply, and demand dynamics. It also implies that landlords in ZIP 72422 might have a slight advantage in attracting tenants who benefit from housing vouchers, as their rent is already lower than the FMR threshold.
The expected tenant profile in this ZIP code would likely include individuals and families who are either fully or partially subsidized by Section 8 vouchers. Given the income levels and the relatively low market rent, these tenants should be able to manage their housing costs effectively, leaving them with disposable income for other necessities. Landlords should prepare for a mix of tenants, some of whom will rely heavily on voucher assistance to cover their rent, while others may have additional resources due to the affordability of the market rent relative to their income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.