Location: Mississippi County, AR | Metro: Jonesboro, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The analysis for ZIP 72438 reveals a significant gap between the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) and the actual market rent as reported by the Census Bureau's American Community Survey (ACS).
In fiscal year 2024, the FMR for ZIP 72438 is $940. In contrast, the market rent for the same area is $475. This means that the FMR is more than double the market rent, creating a disparity of $465, or approximately 98%.
The gap between the FMR and the market rent makes ZIP 72438 a prime location for landlords and small-portfolio investors who wish to participate in the Section 8 Housing Choice Voucher program. The higher FMR allows landlords to charge rents that are significantly above the open-market rate, thereby increasing their potential rental income.
With 30.4% of the population being renters and a median household income of $56,688, the demand for affordable housing is evident. However, the median home value is listed as N/A, which suggests limited data availability on homeownership values but underscores the importance of rental properties in the area.
The high FMR relative to the market rent means that voucher tenants can provide a steady and higher income stream compared to what might be obtained through regular market rentals. Landlords should be aware that while the FMR sets the maximum allowable rent for voucher holders, they must still comply with HUD regulations and maintain the quality of their properties to retain eligibility for the program.
Investing in ZIP 72438 for Section 8 properties can thus be seen as a yield play, given the substantial difference between the FMR and the actual market rent. This strategy allows landlords to capitalize on government subsidies while serving a community with a demonstrated need for affordable housing solutions.
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.