Location: Baxter County, AR | Metro: Baxter County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,190 |
| 5 Bedrooms | $1,380 |
| 6 Bedrooms | $1,546 |
| 7 Bedrooms | $1,670 |
| 8 Bedrooms | $1,754 |
U.S. Census Bureau data (2024)
The ZIP code 72642, located in Baxter County, AR, can serve as a valuable component in a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $880, while the market rent stands at $818. This creates a spread of $62 between the FMR and market rent, ensuring that landlords can maintain positive cash flow when renting to tenants who receive Section 8 vouchers.
The median home value in ZIP 72642 is $222,618, which is relatively low compared to other areas in the state. This makes it easier for landlords to acquire properties without needing significant capital investment, further enhancing the potential for positive cash flow. Additionally, the median income in the area is $68,810, indicating a stable economic environment where tenants are likely to meet their rental obligations.
ZIP 72642 is not particularly strong as an appreciation play, as there is no significant data suggesting rapid price increases or short days on market (DOM). However, it does offer some diversification benefits, with a renter share of 21.2%. This means that landlords can benefit from a mix of renters and homeowners, reducing the risk associated with any single type of tenant.
In summary, ZIP 72642 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its favorable FMR-to-market rent ratio ensures steady income, while the low median home value allows for affordable property acquisition. The stable median income supports reliable tenant payments, making it an attractive option for landlords seeking consistent returns.
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.