Location: Izard County, AR | Metro: Izard County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 72540 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $900 for fiscal year 2026. This figure is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
Local market rents for two-bedroom apartments in ZIP 72540 are currently unavailable, but we can still break down the SAFMR to understand what landlords can expect when participating in the Section 8 program. The SAFMR of $900 is the maximum amount that the housing authority will pay toward a tenant's rent. However, this does not equate to the full rent received by the landlord. Instead, the actual reimbursement depends on several factors, including the tenant's contribution and any utility allowances.
Tenants participating in Section 8 typically pay 30% of their adjusted income toward rent. If a tenant's adjusted income is $1,000 per month, they would contribute $300 towards the rent. The remaining amount, up to the SAFMR, is then covered by the housing voucher. In this case, the housing authority would pay $600 to reach the total SAFMR of $900. It's important to note that if the tenant's contribution plus the voucher amount exceeds $900, the tenant must pay the difference out-of-pocket.
Utility allowances are also factored into the overall compensation structure. These allowances vary based on the size of the unit and the number of occupants. For a two-bedroom apartment, the utility allowance might be around $200, although this can fluctuate. This allowance is intended to cover a portion of the tenant's electricity, gas, water, and sewer costs, as well as refuse collection and any other utilities.
To summarize, in ZIP 72540, a landlord can expect a total payment of $900 for a two-bedroom apartment, comprising the tenant's 30% contribution and the housing authority's voucher payment. If the local market rent is higher than $900, there will be a reimbursement gap where the landlord must either accept a lower rent or require the tenant to pay the difference. Conversely, if the local market rent is lower than $900, landlords might see a surplus, allowing them to keep the full SAFMR amount while still renting below market rates.
In ZIP 72540, given the SAFMR of $900, landlords should anticipate a reimbursement gap unless the local market rents are below this level. Without specific local market rent data, it's difficult to quantify the exact gap, but landlords should prepare for a potential shortfall between the SAFMR and the actual market value.
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.