Location: Fulton County, AR | Metro: Fulton County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The ZIP code 72520 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the Fair Market Rent (FMR) set at $880 for fiscal year 2026 in the metro area. This figure is crucial as it defines the maximum rental amount that can be charged under the program, potentially leading to higher turnover if market rents exceed this limit.
Vacancy exposure is another risk factor. The days on market (DOM) data is currently unavailable, which makes it difficult to predict how quickly units might be filled. In an environment where the FMR is lower than market rents, landlords may face prolonged vacancies, increasing financial pressure and reducing potential returns.
Deferred maintenance is also a critical issue. With a median income of $23,776, residents in ZIP 72520 may struggle to afford the upkeep of properties. Landlords must be prepared to manage maintenance costs proactively to avoid deterioration and ensure compliance with housing standards.
Despite these risks, there are mitigating factors. The renter share in ZIP 72520 is 16.5%, indicating a high concentration of renters. This typically translates into robust demand for Section 8 vouchers, which can help stabilize occupancy rates and reduce vacancy periods.
In conclusion, the combination of high tenant turnover risk, uncertain vacancy exposure, and significant deferred maintenance concerns outweighs the benefits of a high renter density. Therefore, the investment risk for a first-time Section 8 landlord in ZIP 72520 is moderate.
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.