Location: Carroll County, AR | Metro: Carroll 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 | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $180,361 | 0.54% | F |
| 3BR | $1,160 | $241,687 | 0.48% | F |
| 4BR | $1,360 | $309,394 | 0.44% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 72616 (Berryville, AR) for Section 8 properties hinges on three key questions.
1) Does the Fair Market Rent (FMR) of $950 cover the debt service on a property valued at $235,772?
Yes: The FMR of $950 is sufficient to clear the debt service on a property worth $235,772. This means that a landlord can expect to receive rental income that meets their financial obligations, including mortgage payments and other costs associated with property ownership.
No: The FMR does not sufficiently cover the debt service on a property of this value. A landlord would need to ensure that they can find alternative sources of income or reduce expenses to make the investment viable.
It Depends: This scenario is unlikely given the straightforward nature of the question. However, if there are unique circumstances such as extremely low interest rates or highly favorable tax benefits, then the decision might lean towards "it depends."
2) Is the market rent of $857 above, at, or below the FMR?
Above: If the market rent were above the FMR, it would suggest that there is a strong local rental market. However, in ZIP 72616, the market rent is below the FMR at $857. This indicates that landlords may struggle to find tenants willing to pay the higher Section 8 rate.
At: This scenario does not apply since the market rent is below the FMR. At parity, landlords would be indifferent between market and Section 8 rents.
Below: The market rent of $857 is below the FMR of $950. Landlords could potentially attract tenants who prefer the higher Section 8 rent over the market rate, but they must also consider the administrative burden and eligibility requirements of Section 8.
3) Do 23.4% of renters combined with an unknown number of days on the market (DOM) indicate enough demand for Section 8 units?
Yes: With 23.4% of the population renting, there is a significant portion of potential tenants. The exact number of days on the market is not available, but assuming a reasonable turnover, this percentage suggests there is enough demand for Section 8 units.
No: If the days on the market were excessively high, indicating slow sales or rentals, then even the 23.4% of renters might not be enough to support a Section 8 investment. However, without specific DOM data, this conclusion cannot be drawn.
It Depends: The answer here truly depends on the DOM data. If the DOM is low, then the 23.4% of renters is likely sufficient. Conversely, if the DOM is high, the demand might not be robust enough to justify the investment.
To summarize, the FMR of $950 covers debt service on a $235,772 property, making it financially feasible. The market rent being below the FMR suggests that landlords could attract tenants, although they must weigh the benefits against the administrative complexities of Section 8. Lastly, the 23.4% of renters indicates a moderate level of demand, but the decision ultimately depends on the speed of unit turnover, which is currently unknown.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.