Location: Clay County, AR | Metro: Clay County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
A household in ZIP code 72470, with a median income of $55,694, faces significant challenges in affording the market rate rent of $810 per month based on Census American Community Survey (ACS) data. This market rate represents a substantial portion of their monthly income, making it difficult for many renters to cover other essential expenses.
The Federal Market Rent (FMR) standard for the metro area in fiscal year 2026 is set at $890. This figure is even higher than the market rate, indicating that the cost of housing in ZIP 72470 is particularly challenging for those relying on housing vouchers. For landlords, this means that voucher payments might not fully cover the market rate, potentially leading to lower net income compared to cash-paying tenants.
With only 18.2% of the population being renters and a total population of 278, the competition among landlords is relatively low. However, this also suggests a limited pool of potential tenants, making it crucial for landlords to consider both voucher and cash-pay strategies carefully.
The affordability gap in ZIP 72470 is stark. A median-income household would need to allocate over 19% of their gross monthly income just to meet the market rate rent, which is above the generally accepted guideline of spending no more than 30% of income on housing. The FMR being higher than the market rate further complicates matters for voucher holders, who might struggle to find affordable units within the voucher limits.
Takeaway for landlords: Given the tight rental market and the high cost of living relative to income, landlords should be prepared to adjust their expectations when it comes to rental income. Accepting Section 8 vouchers could help secure long-term, stable tenancy but will likely result in lower rents compared to market rates. Landlords should weigh the benefits of voucher stability against the potential for higher cash-pay rents, considering the limited number of renters in the area.
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.