Location: Greene County, AR | Metro: Clay County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
A landlord considering ZIP code 72436 for Section 8 investments must follow a structured decision-making process based on the following criteria:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $910. For a property valued at $172,530, this FMR needs to be sufficient to cover all expenses including mortgage payments, maintenance, and other operational costs.
If the $910 FMR can fully cover the debt service, proceed to Step 2. Otherwise, do not invest in this ZIP code for Section 8 properties.
Step 2: Market Rent Comparison
The Census American Community Survey (ACS) indicates that the average market rent in ZIP 72436 is $725. This figure is below the $910 FMR.
If the market rent is consistently below the FMR, there is an opportunity for landlords to receive higher rental income through Section 8 vouchers, making the investment more attractive.
If the market rent is close to or exceeds the FMR, landlords might find it challenging to secure tenants willing to pay the lower market rates, thus diminishing the appeal of Section 8 investments.
Step 3: Demand Analysis
In ZIP 72436, 12.0% of residents are renters. The days on the market (DOM) data is not available, which means we cannot assess how quickly properties are being rented out.
If the percentage of renters is high and combined with a low DOM, indicating quick turnover, then there is sufficient demand for Section 8 properties.
Given the lack of DOM data, the decision hinges solely on the percentage of renters. With only 12.0% of residents renting, demand may be insufficient unless there are other factors driving rental interest in the area.
Decision Outcome
If you answer yes to Step 1 and Step 2, and if the 12.0% of renters is deemed sufficient without DOM data, then investing in ZIP 72436 for Section 8 properties is viable. However, if any step results in a no, then the investment is not advisable. It depends on the specific financial situation and goals of the landlord, but the data suggests caution due to the limited rental population.
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.