Location: Greene 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 | $670 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $127,109 | 0.95% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 72461 might have several concerns regarding the feasibility of investing in rental properties within this area. Here, we address those concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $880 cover the mortgage on a $126,610 home?
The FMR of $880 for ZIP 72461 can indeed cover a mortgage payment, but the specifics depend on the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of around 5%, the monthly mortgage payment for a $126,610 home would be approximately $680. This leaves a buffer of $200 between the FMR and the mortgage payment, which can help cover property taxes, insurance, maintenance, and other expenses.
Objection 2: Is there enough renter demand at 20.9%?
The percentage of renters at 20.9% might seem low, but it's important to consider the total population and the number of units available. A lower percentage of renters does not necessarily mean low demand; it could indicate a preference for homeownership in the area. To accurately assess demand, one must look at the total number of potential renters and the vacancy rates. The data does not provide the total population or the number of rental units, so it's challenging to give a definitive answer. However, if the local economy supports steady employment and attracts new residents, the demand for rentals could still be robust despite the lower percentage.
Objection 3: Will vouchers keep pace with $674 market rents?
Vouchers can play a significant role in covering market rents, but whether they will keep pace with the $674 market rent in ZIP 72461 depends on the voucher amount and the policies of the housing authorities. In many cases, vouchers do not cover the full rent amount, and landlords may need to accept a lower rent or subsidize the difference. The data provided does not specify the average voucher amount, making it difficult to determine if vouchers will sufficiently cover the market rent. Landlords should verify the voucher amounts and any additional requirements before relying on them as a primary source of income.
In summary, while the FMR of $880 provides a reasonable margin above the mortgage payment of around $680 for a $126,610 home, the percentage of renters at 20.9% requires further investigation into the total number of potential renters and vacancy rates. Lastly, the reliance on vouchers to cover the $674 market rent is uncertain without knowing the specific voucher amounts and housing authority policies. These points highlight the need for a thorough analysis of the local real estate market and tenant demographics before making investment decisions.
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.