Location: Baxter County, AR | Metro: Baxter County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 72537, located in Baxter County, AR metro, reveals several key insights. The HUD Fair Market Rent (FMR) for the area, set at $1,260 for fiscal year 2026, significantly exceeds the market rent of $695 as reported by the Census ACS. This means that voucher tenants will generally cashflow positively at the FMR rate, providing a strong financial advantage for landlords and small-portfolio investors.
To further understand the investment potential, we can derive the rent-to-price ratio using the median home value of $244,767. The ratio is calculated by dividing the annual rent ($695 * 12 months = $8,340) by the median home value, which gives us approximately 3.4%. This low rent-to-price ratio suggests that buying a property in this area might be more attractive compared to renting it out at market rates, especially for those looking to leverage the higher FMR for Section 8 tenants.
Despite the lack of specific data on median days on market (DOM) and the percentage of price cuts, the strong disparity between the HUD FMR and the market rent indicates that the rent-versus-buy dynamics favor rental investments, particularly those utilizing Section 8 vouchers. This is because the difference in rent allows landlords to cover mortgage payments, maintenance costs, and other expenses while still generating a profit.
The strongest investor angle in ZIP 72537 is cashflow, given the substantial gap between the HUD FMR and the market rent. This ensures that landlords can reliably manage their properties without financial strain, making it an ideal location for those seeking stable and positive cashflow from their rental investments.
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.