Section 8 Fair Market Rent (FMR) for ZIP 72704 - 2027

Location: Fayetteville-Springdale-Rogers, AR | Metro: Fayetteville-Springdale-Rogers, AR MSA

Investment Score for ZIP 72704

Monthly Rent (2BR)

$1,340

Median Price (2BR)

$261,231

1% Rule

0.51%

Annual Yield

6.16%

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	$990
1 Bedroom	$1,130
2 Bedrooms	$1,340
3 Bedrooms	$1,860
4 Bedrooms	$2,240
5 Bedrooms	$2,598
6 Bedrooms	$2,910
7 Bedrooms	$3,143
8 Bedrooms	$3,300

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
2BR	$1,340	$261,231	0.51%	F
3BR	$1,860	$340,557	0.55%	F
4BR	$2,240	$459,471	0.49%	F
5BR	$2,598	$782,011	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

32,497

Median Household Income

$96,014

Housing Units

14,912

Renter Percentage

34.5%

Occupancy Rate

92.5%

Renter Occupied

4,761

The ZIP code 72704, located in Fayetteville, Arkansas, is a vibrant and growing area that benefits from its proximity to the University of Arkansas. This makes it particularly attractive for rental investments, given the steady demand from students and young professionals. The market is characterized by a mix of single-family homes and apartments, offering diverse opportunities for real estate investors.

Fair Market Rent (FMR) for ZIP 72704: The FMR for a two-bedroom apartment in ZIP 72704 for fiscal year 2024 is set at $1280, which reflects the subsidized housing standards but is significantly below the market rent levels.
Market Rent (ZORI): According to Zillow's Rent Index (ZORI), the average market rent for a similar property in the same area is $1,920, indicating strong rental demand and potential for higher returns on investment compared to the FMR.
Median Home Value: The median home value in ZIP 72704 is $361,929, which is relatively stable and suggests a moderate cost of entry for those looking to invest in single-family homes.
Renter Share: With 34.5% of residents being renters, there is a substantial portion of the population that relies on rental properties, providing a consistent base of tenants for landlords.
Median Income: The median household income in the area is $96,014, which supports a robust rental market, as residents can afford higher rents and potentially better quality living spaces.

Synthesizing these points, investors in ZIP 72704 should focus on rental properties, especially those near the university, where the ZORI is notably higher than the FMR. Given the significant renter share and median income, the area offers solid potential for positive cash flow and capital appreciation. However, the stability of home values indicates that while growth is possible, it may be gradual. Landlords and small-portfolio investors should consider the balance between rental yields and long-term value when making their investment decisions.

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.