Location: Newton County, AR | Metro: Newton County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 72641 reveals a significant opportunity for landlords and small-portfolio investors participating in the Section 8 program. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $950, while the current market rent, based on Census ACS data, stands at $635. This creates a gap of $315 per month, or approximately 33%, between what voucher holders can pay and the actual market rate.
Given that the FMR exceeds the market rent, properties in ZIP 72641 become attractive for a yield play. Landlords who accept Section 8 vouchers can expect to receive a higher rental income than what the open market currently offers. This scenario is particularly favorable considering the local economic conditions: ZIP 72641 has a 35.0% renter population, indicating a substantial demand for affordable housing. The median home value in the area is $235,063, which places it within a moderate range, and the median household income is $37,696, suggesting that many residents rely on assistance programs like Section 8 to secure housing.
In this context, accepting Section 8 tenants allows landlords to tap into a government-backed revenue stream that exceeds the prevailing market rates. This not only provides a financial advantage but also ensures a stable tenant base, as voucher holders are committed to paying their rent through the federal assistance program. For small-portfolio investors, this means a potential increase in cash flow and a lower risk of vacancy compared to renting at the current market rate of $635.
However, it's important to note that this yield play comes with its own set of considerations. Accepting Section 8 tenants involves compliance with HUD regulations, which can affect how properties are managed and maintained. Despite these requirements, the financial benefit of receiving $950 in FMR versus $635 in market rent makes it a compelling strategy for maximizing returns in ZIP 72641.
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.