Location: Lawrence County, AR | Metro: Jackson County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 72471 might have several concerns regarding the feasibility of investing in this area. Let's address these concerns with the available data.
Will FMR $880 (metro FY 2026) cover the mortgage on a $77,978 home?
The Fair Market Rent (FMR) of $880 per month for ZIP 72471 is an important figure to consider when evaluating whether rental income can support a mortgage. To determine if this FMR will indeed cover the mortgage, we need to calculate the expected monthly mortgage payment based on the median home value of $77,978. Assuming a standard 30-year fixed-rate mortgage at a current average rate of around 5%, the principal and interest payment alone would be approximately $415 per month. This does not include property taxes, insurance, and maintenance costs. However, even with these additional expenses, the FMR of $880 provides a reasonable buffer that could cover the total monthly mortgage expenses, making it plausible for rental income to sustain the investment.
Is there enough renter demand at 46.8%?
The percentage of renters in ZIP 72471 stands at 46.8%. This figure indicates a significant portion of the population relies on rental housing. While 46.8% may seem moderate, it still represents a substantial market. To gauge the strength of renter demand, we must also consider the vacancy rate and the trend of rental growth. The data provided does not specify these metrics, but a nearly equal split between homeowners and renters suggests a balanced market. If the vacancy rate is low and rental growth positive, the demand at 46.8% could be considered robust. However, without specific vacancy and growth rates, we cannot conclusively state the level of demand.
Will vouchers keep pace with $573 market rents?
The market rent of $573 per month in ZIP 72471 is a key factor for investors who plan to accept Housing Choice Vouchers (commonly known as Section 8 vouchers). The voucher program typically covers a portion of the market rent, adjusted annually based on local market conditions. According to recent trends, the U.S. Department of Housing and Urban Development (HUD) has been increasing voucher amounts to better match market rents. However, the exact amount of voucher coverage for ZIP 72471 is not specified in the provided data. To ensure that vouchers keep pace with market rents, landlords should regularly check HUD updates and local housing authority guidelines. Given the current market rent of $573, it is reasonable to expect that vouchers will continue to adjust to meet these levels, though this cannot be guaranteed without specific figures.
In conclusion, while the data shows promising indicators such as the FMR covering potential mortgage costs and a notable percentage of renters, some questions remain unanswered regarding the precise demand and voucher coverage adjustments. Investors should conduct further research into local vacancy rates and HUD updates to make a fully informed decision.
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.