Location: Cleburne County, AR | Metro: Cleburne County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
The analysis for ZIP code 72546 reveals some limitations due to missing data points, particularly regarding market rents and median home values. However, we can still derive a rough picture of the potential Section 8 cap rate based on the available information.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 72546 for fiscal year 2026 is set at $960 per month. To annualize this figure, multiply it by 12, resulting in an annual rental income of $11,520 for a two-bedroom unit under the Section 8 program.
Unfortunately, the market rent for the area is not available, which makes direct comparisons challenging. Similarly, the median home value is also unspecified, complicating the calculation of a precise gross yield for non-Section 8 investments. Without these figures, it's impossible to provide a concrete comparison between the gross yields of Section 8 properties versus market-rate properties.
Given the lack of specific market rent data, we cannot accurately determine the implied gross yield for market-rate properties. However, the gross yield for a Section 8 property can be estimated based on the annualized FMR. Assuming a median home value is eventually provided, the gross yield would be calculated as the annual rental income divided by the median home value.
The renter density and days on market (DOM) are also unspecified, which means we cannot definitively state which scenario is more realistic. Typically, higher renter density and shorter DOM periods indicate a more active rental market, potentially favoring market-rate properties over Section 8. Conversely, if the renter density is lower and the DOM longer, landlords might find Section 8 properties more stable and predictable.
To conclude, while the exact cap rates cannot be determined without complete data, the annualized FMR of $11,520 provides a baseline for potential Section 8 investment returns. Landlords and small-portfolio investors should gather additional local real estate metrics to make informed decisions about whether Section 8 or market-rate properties offer better gross yields and stability in ZIP 72546.
Data Sources: FMR data from HUD (2027).
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.