Section 8 Fair Market Rent (FMR) for ZIP 72716 - 2027
Location: Fayetteville-Springdale-Rogers, AR | Metro: Fayetteville-Springdale-Rogers, AR MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,010 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
To determine if a landlord should invest in ZIP 72716 for Section 8 properties, follow this decision tree:
- 1) Does FMR $1210 (zip FY 2024) cover the debt service on a property?
- Yes: The Fair Market Rent (FMR) of $1210 is sufficient to cover the debt service, making the area financially viable for Section 8 properties.
- No: The FMR of $1210 does not cover the debt service, which means the investment would be unprofitable without additional sources of income.
- 2) Is the market rent above, at, or below the FMR of $1210?
- Above: If the market rent is higher than $1210, then the landlord can consider renting to non-Section 8 tenants to maximize profit. However, this also indicates that there might be fewer Section 8 tenants who can afford the rent in this area.
- At: The market rent aligns with the FMR, meaning that the landlord will receive the full amount of the voucher without additional tenant contribution. This is ideal for Section 8 properties.
- Below: If the market rent is below $1210, the landlord could potentially rent to Section 8 tenants and still attract non-Section 8 tenants willing to pay less than the FMR but more than the market rate.
- 3) Are there enough renters and days on the market to meet demand?
- It Depends: Without specific percentages of renters and days on the market (DOM), it's challenging to make a definitive statement. However, if the percentage of renters is high and the DOM is low, it suggests strong demand for rental properties in ZIP 72716. Conversely, if the percentage of renters is low and DOM is high, the demand for rentals is weak.
Note: The decision tree cannot provide a clear yes or no due to missing data points such as the debt service amount, market rent, and the percentage of renters plus days on the market. These details are necessary to make an informed decision.
Data Sources: FMR data from HUD (2027).
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.