Location: Baxter County, AR | Metro: Baxter County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
U.S. Census Bureau data (2024)
A household in ZIP code 72635, with a median income of $49,709, faces significant challenges in affording the market rate rent of $809 per month based on Census American Community Survey (ACS) data. This discrepancy highlights an affordability gap where the average renter's income is notably lower than the cost of housing.
To put this into perspective, let's consider the Federal Market Rent (FMR) standard of $970 for the metro area in fiscal year 2026. The FMR is higher than the market rate but still represents a financial strain for many households given their median income.
The ZIP code has a rental population of 25.1%, amounting to approximately 860 renters out of the total population of 3,426. This demographic detail suggests that there is a considerable segment of the community looking for affordable housing options. For landlords, this means that competition for tenants is likely to be intense, especially when considering the limited disposable income available to most renters.
In light of these figures, landlords should carefully weigh their options between accepting Section 8 vouchers and relying solely on cash-paying tenants. While the voucher payment of $970 aligns closely with the FMR and offers a stable source of income, it might not be sufficient to cover all costs associated with maintaining properties at this level. Cash-paying tenants, who might pay closer to the market rate of $809, could offer a better financial return but come with the risk of higher vacancy rates due to the affordability constraints faced by many residents.
The takeaway for landlords is that ZIP 72635 presents a challenging environment where affordability is a key concern. Accepting Section 8 vouchers can ensure steady occupancy and a predictable income stream, albeit at a slightly higher rent than the market rate. However, landlords must also be prepared to manage properties efficiently to maximize profitability and minimize risks associated with tenant turnover and maintenance costs.
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.