Location: Marion County, AR | Metro: Baxter 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 | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $190,790 | 0.53% | F |
| 3BR | $1,320 | $261,313 | 0.51% | F |
| 4BR | $1,330 | $390,845 | 0.34% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 72653, located in Mountain Home, AR, within the Marion County, AR metro area, reveals key insights into its viability for rental investments.
The rent math does not work favorably. The Fair Market Rent (FMR) for the area, set at $980 for fiscal year 2026, falls below the current market rent indicated by Zillow's Observed Rental Index (ZORI), which stands at $1,017. This suggests that landlords may struggle to cover costs and maintain profitability if they adhere strictly to the FMR guidelines.
Acquisition in this market is relatively affordable. With a median home value of $232,221, potential investors can secure properties without facing the high barriers to entry seen in more expensive markets. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.1%) imply a stable market rather than one experiencing significant discounts or rapid turnover, which could limit opportunities for acquiring distressed properties at a discount.
Tenant demand is present but not overwhelming. The population of 29,564 supports a renter share of 26.1%, indicating a modest but steady pool of potential tenants. While this percentage is not exceptionally high, it provides a reliable base for rental income.
Verdict: ZIP 72653 offers a balanced opportunity for small-portfolio investors. Despite the unfavorable rent math where FMR is slightly lower than market rates, the affordable median home value and consistent tenant demand make it a viable investment location. Landlords should be prepared to charge above FMR to ensure profitability and consider the market stability when evaluating property acquisition strategies.
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.