Location: Newton County, AR | Metro: Boone County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 72611 reveals an interesting scenario when comparing the Federal Market Rent (FMR) and the market rent figures. Using the annualized 2BR FMR of $1,070 for fiscal year 2026, the gross yield can be calculated as follows:
To find the gross yield using the FMR, multiply the monthly rate by 12 to get the annual rental income: $1,070 * 12 = $12,840. Dividing this by the median home value of $227,102 yields a gross yield of approximately 5.65%. This calculation assumes that the property can command the FMR rate, which may not always be the case.
Using the Census ACS reported market rent of $825, the annual rental income would be $825 * 12 = $9,900. The gross yield based on the market rent would then be $9,900 / $227,102, resulting in a gross yield of about 4.36%. This figure represents the actual rental income landlords might expect based on current market conditions.
Given the 19.5% renter density in ZIP 72611, it's important to note that a significant portion of homeownership exists in this area. This suggests that the market rent figure is more reflective of the current demand and supply dynamics. The N/A-day Days on Market (DOM) indicates either a very efficient market where properties sell quickly, or a lack of recent sales data, making it difficult to gauge the exact speed at which properties are moving.
The disparity between the FMR and market rent highlights the potential gap between government-assisted housing rates and what the market dictates. While the FMR provides a higher gross yield of 5.65%, the reality of market conditions, as indicated by the lower market rent, suggests a more modest gross yield of 4.36%. For landlords and small-portfolio investors, understanding these differences is crucial for setting realistic expectations and making informed decisions regarding property investments in ZIP 72611.
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.