Location: Izard County, AR | Metro: Fulton County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
A landlord considering ZIP 72576 for Section 8 investments must navigate several key factors before making a decision. The first step involves evaluating whether the Fair Market Rent (FMR) of $880, applicable for the metro area in fiscal year 2026, can cover the debt service on a property valued at $174,334. If the monthly debt service is less than $880, then the answer is yes; the FMR clears the debt service, making the investment viable from a financial standpoint. However, if the monthly debt service exceeds $880, the answer is no; the investment would not be financially sustainable under current conditions.
The second question to address is how the market rent of $628 compares to the FMR. If the market rent is below the FMR, then landlords can potentially charge higher rents, up to the FMR, without losing tenants to the market. This scenario suggests a positive outlook, as it allows for greater flexibility in pricing. Conversely, if the market rent is above or equal to the FMR, the answer is that it depends on the specific rental market dynamics and competition levels. Landlords may face challenges in attracting tenants willing to pay the higher FMR rate.
The final consideration is the demand for rentals. With 28.1% of the population being renters, there is a significant portion of the market interested in leasing properties. However, the days on the market (DOM) being listed as N/A indicates a lack of recent sales data, which could mean either a stable market with few turnovers or a less active market where properties take longer to sell. Given the available data, if the percentage of renters is high and there is evidence of steady demand (such as low vacancy rates), the answer is yes; there is enough demand to support a Section 8 investment. If the market shows signs of weakening demand or increasing vacancy rates, the answer shifts to no; the investment may not be profitable due to insufficient tenant interest.
To summarize, the decision to invest in ZIP 72576 for Section 8 properties hinges on three main criteria: the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the level of rental demand. If all three conditions align favorably, the investment is likely to succeed. Otherwise, further investigation into local market trends and potential risks is necessary.
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.