Location: Clay County, AR | Metro: Clay County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 72456 in Clay County, Arkansas, reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910, while the market rent as per the Census ACS stands at $1,625. This indicates that the market rent significantly exceeds the FMR, suggesting that landlords could potentially face challenges in attracting tenants who rely on government subsidies. However, those willing to cater to the broader market can expect higher rental income.
Regarding the affordability of property acquisitions, the data provided does not include specific figures for median home values, days on market (DOM), or the percentage of homes that have been price-cut. Therefore, a precise assessment of the cost and ease of acquiring properties cannot be made based solely on the given information. Landlords should conduct further research to understand the local real estate market dynamics.
The third question concerns tenant demand. With a population of 433, the renter share is 11.5%, which translates to approximately 50 potential renters. This low number suggests limited demand for rental properties, making it crucial for landlords to offer competitive rates and attractive amenities to attract and retain tenants.
In conclusion, ZIP 72456 presents a scenario where market rents far exceed the FMR, indicating a niche market for subsidy-dependent tenants. Without specific data on median home values, DOM, and price-cut shares, the affordability of acquisitions remains uncertain. Tenant demand is low due to the small population size and limited renter share. Landlords must carefully consider these factors before investing, focusing on market-rate rentals and enhancing property appeal to overcome the challenges posed by this micro-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.