Location: Newton 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 | $740 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $218,619 | 0.58% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 72638 highlights several potential challenges for landlords considering Section 8 participation. Firstly, tenant turnover is likely to be higher due to the significant gap between the market rent at $800 and the Fair Market Rent (FMR) at $980 for fiscal year 2026 in the metropolitan area. This discrepancy can lead to difficulties in attracting tenants who qualify for the program, as they might prefer units that match their voucher amount exactly.
Vacancy exposure is another concern. The average Days on Market (DOM) is not available, which makes it difficult to predict how long a property might remain vacant. High vacancy rates can be costly for landlords, especially when they rely on steady rental income.
Deferred maintenance is also a risk factor. With a typical home value of $216,420 and a median household income of $65,175, some residents may struggle to afford necessary repairs and upgrades, leading to potential maintenance issues that could affect the overall condition of the property. Landlords should prepare for the possibility of increased maintenance costs if they decide to participate in the Section 8 program.
However, these risks must be weighed against the high proportion of renters in the area, which stands at 24.7%. A large renter population typically translates into greater demand for housing vouchers, potentially making it easier to fill vacancies with qualified Section 8 tenants. This high renter density can serve as a stabilizing factor for landlords, ensuring a steady stream of applicants even in a challenging market.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 72638 is moderate. While there are notable challenges such as higher tenant turnover and potential deferred maintenance issues, the strong renter demand provides a counterbalance that can mitigate some of these risks.
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.