Location: Newton County, AR | Metro: Newton County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,080 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The ZIP code 72670 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover is a significant concern. While the Fair Market Rent (FMR) for the metro area is set at $880 per month for fiscal year 2026, the lack of data on market rent suggests that actual rental prices may differ, potentially leading to higher turnover rates if tenants find more affordable options outside of Section 8.
Vacancy exposure is another critical issue. The absence of data on the days on market (DOM) indicates that landlords might face extended periods without tenants, increasing financial strain and reducing potential income. This uncertainty can be particularly problematic for first-time landlords who may not have the financial buffer to withstand prolonged vacancies.
Deferred maintenance is also a risk factor. With no specific information on the typical home value and median income in ZIP 72670, it's challenging to gauge the ability of residents to afford necessary repairs and upkeep. This could result in landlords having to shoulder unexpected maintenance costs, which can quickly eat into profit margins.
However, these risks must be weighed against the high renter share in the area, which stands at 31.6%. High renter density typically correlates with increased demand for housing vouchers, making it more likely that Section 8 tenants will be available to fill properties. This demand can stabilize occupancy rates and provide a steady stream of rental income.
In conclusion, despite the potential pitfalls, the high renter share in ZIP 72670 makes it a moderate risk for a first-time Section 8 landlord. The availability of tenants is a strong positive, but landlords should be prepared for the uncertainties around market rents, vacancy durations, and maintenance costs.
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.