Section 8 Fair Market Rent (FMR) for ZIP 72542 - 2027

Location: Sharp County, AR | Metro: Fulton County, AR

Investment Score for ZIP 72542

N/A

Monthly Rent (2BR)

$910

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$650
1 Bedroom	$710
2 Bedrooms	$910
3 Bedrooms	$1,250
4 Bedrooms	$1,470
5 Bedrooms	$1,705
6 Bedrooms	$1,910
7 Bedrooms	$2,063
8 Bedrooms	$2,166

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,250	$202,236	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,072

Median Household Income

$41,295

Housing Units

2,179

Renter Percentage

16.8%

Occupancy Rate

70.5%

Renter Occupied

258

ZIP code 72542, located within the Sharp County, AR metro area, presents an interesting profile when compared to typical ZIP codes in the region. The Fair Market Rent (FMR) for 72542 stands at $880, which is set for metro fiscal year 2026. This figure is notably higher than the market rent of $646, indicating that the federally determined rental rate is above what the local market typically charges.

The median home value in ZIP 72542 is $134,416, which is below the average for the metro area. This suggests that the area may be considered a value pocket, where property prices are lower relative to other parts of the metro. Additionally, the renter share in 72542 is 16.8%, which is higher than the average for Sharp County, AR. A higher renter share combined with below-average home values can often signal a sweet spot for Section 8 investments, as it indicates a concentration of renters who might benefit from subsidized housing options.

To further contextualize these figures, consider the following:

Fair Market Rent vs. Market Rent: The discrepancy between the FMR ($880) and the actual market rent ($646) means landlords participating in the Section 8 program could receive a higher reimbursement rate, making the investment more attractive financially.
Home Value: With a home value of $134,416, properties in 72542 are less expensive than the metro average, potentially offering better opportunities for profit margins on property purchases or renovations.
Renter Share: The 16.8% renter share is significant, indicating a substantial portion of the population relies on rental housing. This could translate into a steady demand for rental units, particularly those that qualify under the Section 8 program.

In summary, ZIP code 72542 appears to be a value pocket within the Sharp County, AR metro, characterized by below-average home values and a higher-than-average renter share. These factors, combined with a favorable FMR-to-market-rent ratio, suggest that it could be an advantageous location for Section 8-related investments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.