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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $232,210 | 0.44% | F |
| 3BR | $1,220 | $350,926 | 0.35% | F |
| 4BR | $1,430 | $491,629 | 0.29% | F |
U.S. Census Bureau data (2024)
Eureka Springs, AR (ZIP 72631), presents a unique scenario for real estate investment, particularly for those interested in Section 8 properties. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960. This is notably higher than the local market rent of $788, indicating a potential for higher yields when renting to Section 8 tenants. However, the median home value in Eureka Springs is $317,003, which is significantly lower than many metropolitan areas, suggesting that while rental income may be competitive, the overall property values are modest.
The stability of the market is influenced by several factors. Firstly, only 18.4% of residents are renters, which is relatively low compared to urban areas where rental populations can exceed 50%. This suggests a less volatile rental market but also a smaller pool of potential tenants. Additionally, the median household income is $56,678, which is below the national average, potentially impacting the financial stability of tenants. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties might turn over, but the low percentage of renters and the disparity between FMR and market rent suggest a market that leans towards stability rather than rapid turnover.
Based on these figures, Eureka Springs appears to be a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the potential for higher rental income exists due to the favorable difference between FMR and market rent, the modest property values and low percentage of renters indicate a market that prioritizes consistent, reliable returns over high-risk, high-reward scenarios. Landlords and small-portfolio investors should expect a moderate yield with relatively stable cash flows, making it a suitable choice for those seeking a balanced approach to real estate investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.