Location: Izard County, AR | Metro: Fulton 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 | $700 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $129,660 | 0.76% | D |
| 3BR | $1,370 | $185,213 | 0.74% | D |
U.S. Census Bureau data (2024)
The ZIP code 72512, located in Horseshoe Bend, AR, presents a unique scenario when classified on the axes of yield and stability. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $890. This figure represents the average rent that tenants can afford based on their income. However, the market rent in the same area is lower, at $748. The discrepancy between the FMR and the actual market rent suggests that there might be opportunities for higher rental yields if properties are priced closer to the FMR rather than the current market rate.
Additionally, the median home value in the area is $147,314. This relatively low home value could indicate a market where rental properties have the potential to generate higher returns compared to areas with higher property values, assuming the cost of acquisition and maintenance remains proportionate.
Moving to the stability axis, the percentage of renters in the area is 23.6%. This figure is indicative of a community that leans more towards homeownership, which could mean less demand for rental properties. Furthermore, the median household income in the area is $46,449. This income level is crucial for assessing the ability of residents to pay market rents, especially considering the lower market rent compared to the FMR. The lack of data on the number of days on market (DOM) for rental listings makes it difficult to assess the speed at which properties are rented out, but generally, a higher percentage of homeowners indicates slower turnover rates for rentals.
Based on these figures, ZIP 72512 would best be classified as a somewhere in between market. It offers moderate yield potential due to the gap between the FMR and market rent, but the stability is compromised by the low percentage of renters and potentially slower rental turnovers. Landlords and small-portfolio investors should consider pricing strategies that balance between maximizing rental income and ensuring occupancy rates. While the market does not present the characteristics of a high-yield/low-stability flip-style market, nor does it fully align with a steady-cashflow zone, it does offer opportunities for those willing to manage the trade-offs between yield and stability carefully.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.