Location: Carroll County, AR | Metro: Carroll County, AR
| 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 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,160 for ZIP 72660 will sufficiently cover the mortgage on a typical home in the area. According to recent data, the median sales price in ZIP 72660 is $192,267. With home prices ranging from $40,000 to $225,000, it's evident that a significant portion of these homes could be financed with mortgages well below the national average. Assuming a standard mortgage rate and terms, the monthly payment on a $192,267 home would likely fall within the range that can be covered by the FMR of $1,160.
The rental market demand at 18.6% is another point of concern. However, the data indicates that there are currently 216 rental properties available in ZIP 72660. This suggests a robust rental market with a steady supply of units. Given the number of rental listings, it's clear that there is sufficient demand to support a healthy rental environment. Moreover, the fact that rentals are primarily 3+ bedroom units priced between $300 and $499 per month, inclusive of utilities, highlights the affordability and attractiveness of the area for renters. This supports the notion that the 18.6% rental demand figure is adequate for sustaining a profitable investment.
Lastly, an investor might wonder if housing vouchers will keep pace with the market rents of $863. While specific data for ZIP 72660 is not readily available, the national trend shows that the Housing Choice Voucher (HCV) program assists very low-income families, the elderly, and the disabled in securing housing. The program's ability to adapt to local market conditions ensures that it can help maintain rental affordability for eligible tenants. It's important to note that voucher amounts are periodically adjusted based on local market conditions, which means they should generally align with the prevailing rents, though this does not guarantee exact parity with the $863 market rent figure.
In conclusion, while some concerns may arise regarding the financial viability of investing in ZIP 72660, the data supports the feasibility of covering mortgage costs with the FMR, the adequacy of rental demand, and the potential for housing vouchers to maintain affordability. These factors collectively suggest a promising investment opportunity.
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.