Location: Cleburne County, AR | Metro: Cleburne County, AR
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $200,644 | 0.49% | F |
| 3BR | $1,270 | $264,633 | 0.48% | F |
| 4BR | $1,330 | $434,575 | 0.31% | F |
| 5BR | $1,543 | $568,359 | 0.27% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 72543, Heber Springs, AR, provides valuable insights into potential investment opportunities. For a two-bedroom unit, the Fair Market Rent (FMR) set by HUD for fiscal year 2026 is $950 per month, while the Census ACS reports the average market rent at $849 per month.
To calculate the implied gross yield, we use the median home value of $247,433. The annualized rent based on the FMR would be $11,400 ($950 x 12 months), resulting in an implied gross yield of 4.61%. This calculation is derived by dividing the annual rent by the median home value: $11,400 / $247,433 = 0.0461 or 4.61%. On the other hand, using the market rent figure of $849 per month, the annualized rent would be $10,188, leading to an implied gross yield of 4.12%.
Given the 24.3% renter density in Heber Springs, it's important to note that the majority of homeowners are likely to be owner-occupiers rather than landlords. This suggests that the market rent figure might be more reflective of the actual rental income landlords can expect, making the 4.12% gross yield scenario more realistic.
The FMR scenario presents a higher gross yield, but it's crucial to understand that these rates are set to ensure affordability and may not represent the true market conditions. Therefore, while the 4.61% gross yield is theoretically possible under Section 8, the lower 4.12% gross yield based on market rents is a more practical estimate for investment purposes.
In conclusion, while both figures provide useful benchmarks, the 4.12% gross yield is more likely to be realized due to the local market dynamics and the limited data on days on market (DOM).
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.