Section 8 Fair Market Rent (FMR) for ZIP 72701 - 2027

Investment Score for ZIP 72701

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$930
1 Bedroom	$1,080
2 Bedrooms	$1,280
3 Bedrooms	$1,770
4 Bedrooms	$2,140
5 Bedrooms	$2,482
6 Bedrooms	$2,780
7 Bedrooms	$3,002
8 Bedrooms	$3,152

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,080	$299,737	0.36%	F
2BR	$1,280	$337,017	0.38%	F
3BR	$1,770	$340,128	0.52%	F
4BR	$2,140	$519,125	0.41%	F
5BR	$2,482	$843,292	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 72701 (Fayetteville, AR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 72701 in Fayetteville, AR, for 2026 indicate that the rent for a two-bedroom apartment is set at $1360. This figure represents 29.4% of the median household income in the area, which is $55,506. However, the actual median rent for a two-bedroom apartment on Zillow is $324,703, which translates to a monthly rental price far exceeding the FMR. The price-to-FMR ratio of 19.9x suggests that the actual rental market is significantly higher than what the FMR stipulates. For voucher holders, this means they face severe constraints as the FMR is likely much lower than what landlords charge in the private market. Consequently, voucher holders may struggle to find units that accept their vouchers, given the substantial gap between FMR and actual market rents. #### Affordability & Renter Profile With 56.6% of the population being renters, the demand for rental properties in ZIP 72701 is quite high. The occupancy rate of 86.7% indicates that the market is relatively tight, with most available units occupied. Given the median household income of $55,506, many residents are likely to be low-income families who rely heavily on affordable housing options. The high percentage of renters and the tight occupancy rate suggest that there is a significant need for affordable housing in the area. However, the actual rents are well above the FMR, making it difficult for low-income households to afford housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 72701 presents a challenging scenario for cash flow if the focus is solely on Section 8 vouchers. The FMR for a two-bedroom unit is $1360, while the actual median rent is $324,703, which is approximately $2705 per month when amortized over 12 months. This discrepancy means that investors would have to accept a significant reduction in potential rental income if they want to cater to Section 8 voucher holders. The investment grade in this area would be considered low due to the limited number of units that can realistically be rented at the FMR. Investors might find better returns by targeting the broader rental market, but this would exclude them from the benefits of Section 8 vouchers, such as guaranteed payments and stable tenancy. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $1130, which is still below the actual market rates but closer to what some landlords might accept. This could provide a better balance between affordability and market demand. 2. **Target Areas with Lower Actual Rents**: Within ZIP 72701, there might be pockets where actual rents are closer to the FMR. Investors should conduct localized market research to identify these areas. For instance, if an investor can find a two-bedroom unit renting for around $1500-$1600, it would be more feasible to operate within the FMR guidelines while still attracting tenants. 3. **Consider Mixed-Income Developments**: To maximize the potential for cash flow, investors might consider developing mixed-income properties. This approach allows for a portion of the units to be rented at FMR levels to Section 8 voucher holders, while other units can be rented at market rates. This strategy can help stabilize the overall financial performance of the property. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 72701 is to **Skip**. The actual rents in the area are far above the FMR, making it difficult to find units that can be rented profitably at the FMR levels. While there is a strong demand for rental properties, the high price-to-FMR ratio indicates that the market is not conducive to maximizing returns through Section 8 vouchers alone. Investors should either look into alternative strategies, such as mixed-income developments, or consider other ZIP codes with more favorable price-to-FMR ratios.

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.