Location: Fulton County, AR | Metro: Fulton County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 72583 for Section 8 should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $990 cover the debt service on a property valued at $225,757?
No: The FMR of $990 is insufficient to cover the debt service on a property valued at $225,757. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. Given the property's value, these expenses would likely exceed the FMR, making the investment unprofitable without additional non-rental income sources.
Yes: Proceed to the next question. The FMR of $990 is adequate to cover the debt service on a property valued at $225,757, indicating that the rental income can support the financial obligations associated with the property.
2) Is the market rent of $733 above, at, or below the FMR?
Below: The market rent of $733 is below the FMR of $990. This means that properties in ZIP 72583 are undervalued compared to what the government will pay for Section 8 vouchers. Landlords could potentially profit by charging closer to the FMR, but must ensure compliance with local regulations and the terms of the voucher program.
At: It depends. If the market rent equals the FMR, the landlord can expect to receive the full amount of the voucher. However, the landlord must still consider the overall demand for rentals and the competitiveness of the market.
Above: Not applicable in this scenario, as the market rent is below the FMR. If the market rent were higher, it would indicate a strong local rental market, but the landlord would be limited by the FMR in how much they could charge for a Section 8 tenant.
3) Are 12.1% of residents renters, and is the average number of days on the market (DOM) sufficient to meet demand?
It depends: With 12.1% of residents being renters, there is some demand for rental properties in ZIP 72583. However, the lack of data on the average DOM makes it difficult to assess the speed at which properties are rented out. A low DOM suggests high demand, while a high DOM indicates low demand. Without this information, landlords must consider other factors such as population growth, job availability, and the local housing market trends to make an informed decision.
In conclusion, if the FMR of $990 does not cover the debt service on a property valued at $225,757, then the answer is clear: No. If it does cover the debt service, then the market rent being below the FMR suggests potential profitability, but the decision ultimately hinges on the rental demand, which is partially indicated by the 12.1% renter rate but requires further investigation into the DOM to be fully understood.
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.