Location: Mississippi County, AR | Metro: Jonesboro, AR HUD Metro FMR Area
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 | $730 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $233,990 | 0.54% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 72442 presents a nuanced scenario for landlords and small-portfolio investors, particularly concerning pricing power and appreciation potential over the next 12-24 months. With a median home value at $200,175, the area is accessible to a broad range of buyers, indicating a stable demand base.
The fact that only 0.1% of listings have reduced their prices suggests that sellers are maintaining confidence in their property values. This resilience in asking prices could imply that the market is balanced or slightly favoring sellers, which supports pricing power for landlords who can leverage this stability to maintain or increase rental rates.
Median Days on Market (DOM) being listed as N/A indicates either a very active market where homes sell quickly, or there might be insufficient data to provide an accurate figure. In either case, quick sales are generally indicative of strong buyer interest, which can translate into steady demand for rentals as well.
On the rental side, the Fair Market Rent (FMR) for ZIP code 72442 in fiscal year 2024 is set at $940. This compares favorably to the current market rent of $649, according to Census ACS data. The gap between FMR and market rent signals an opportunity for landlords to gradually adjust their rental rates upward, aligning closer with the FMR without significantly deterring tenants.
For long-term investors, the setup implies limited appreciation potential. The median home value has remained relatively stable, and with only a slight reduction in listing prices, it's unlikely that rapid increases in property values will occur. Instead, the focus should be on generating income through rental yields and potentially capitalizing on the rental rate adjustment mentioned above.
Investors should also consider the broader economic context and any regional factors that could influence both home values and rental rates. However, based on the provided data, the market in ZIP 72442 appears to support a conservative strategy focused on income generation rather than speculative appreciation.
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.