Location: Fayetteville-Springdale-Rogers, AR | Metro: Fayetteville-Springdale-Rogers, AR MSA
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 | $910 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $256,423 | 0.48% | F |
| 3BR | $1,690 | $377,555 | 0.45% | F |
| 4BR | $2,020 | $644,736 | 0.31% | F |
| 5BR | $2,343 | $937,992 | 0.25% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 72703, Fayetteville, AR, are significant. Tenant turnover is a primary concern, with the market rent at $1,475 compared to the lower Fair Market Rent (FMR) of $1,060 for FY 2024. This discrepancy can lead to higher tenant churn as vouchers typically cover only the FMR, making it less attractive for tenants to stay in properties that cost significantly more. Landlords must prepare for frequent turnovers, which can be costly due to the time and expense involved in screening new tenants and preparing units for occupancy.
Vacancy exposure is another issue. The Days on Market (DOM) for vacant properties is not available, which suggests there might be challenges in predicting how long a property will remain unoccupied. In a market where rental rates exceed FMR, this unpredictability can pose a financial risk if vacancies persist longer than expected.
Deferred maintenance is also a risk factor. With a typical home value of $406,290 and a median income of $60,568, landlords need to be vigilant about maintaining their properties. The income levels suggest that tenants may struggle to contribute to major repairs or upkeep, leaving the landlord responsible for all costs associated with property maintenance and improvements.
However, these risks are offset by the high demand for rentals in the area. With 62.0% of residents being renters, there is a substantial pool of potential voucher holders looking for housing. High renter density generally indicates a robust demand for rental properties, which can help mitigate the risk of vacancy. Additionally, the concentration of renters increases the likelihood of finding qualified Section 8 tenants who are committed to staying in their homes long-term.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 72703.
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.