Location: Sharp County, AR | Metro: Fulton County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 72513 is centered around the significant gap between the Fair Market Rent (FMR) set at $970 for the fiscal year 2026 and the actual market rent reported at $675 according to the Census ACS. This represents a difference of $295 per month, or approximately 43.8%. Given that the FMR exceeds the market rent, it makes ZIP 72513 a compelling yield play for landlords and small-portfolio investors who can attract voucher tenants.
In ZIP 72513, where 22.0% of residents are renters, the median home value stands at $189,860, indicating a relatively stable housing market. However, the median income of $40,055 suggests that many residents might struggle to afford housing without assistance. This is where the Section 8 program comes into play, offering subsidies to eligible tenants based on the FMR.
The higher FMR compared to the actual market rent means that landlords accepting Section 8 vouchers can potentially command rents closer to the $970 FMR threshold, thereby increasing their rental income. This scenario presents an opportunity for landlords to achieve better yields on their properties without necessarily raising rents beyond what voucher recipients can afford.
However, there are considerations to keep in mind. The cost of housing voucher tenants below open-market rates includes administrative burdens and compliance with HUD regulations. Despite these costs, the ability to charge closer to the FMR while still being within reach for voucher holders makes this ZIP code a favorable investment area for those willing to navigate the requirements of the Section 8 program.
To summarize, the gap between the FMR and market rent in ZIP 72513 creates a situation where landlords can benefit from higher yields by accepting Section 8 vouchers, all while providing affordable housing options to a population that largely relies on rental assistance.
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.