Location: Fayetteville-Springdale-Rogers, AR | Metro: Fayetteville-Springdale-Rogers, AR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 72717 within the Fayetteville-Springdale-Rogers, AR MSA reveals several key points for landlords and small-portfolio investors.
Firstly, regarding the rent math, the comparison between the Fair Market Rent (FMR) and the market rent indicates a potential challenge. The FMR set at $1060 for the fiscal year 2024 is notably higher than the reported market rent of $848 based on Census ACS data. This suggests that landlords might struggle to find tenants willing to pay the higher FMR rate, leading to a mismatch between government-set rents and actual market conditions.
Secondly, the acquisition metrics present a mixed picture. With the median home value being listed as N/A, it's difficult to gauge the typical cost of property in this area. However, the average days on market (DOM) and the percentage of homes needing price cuts before selling are also marked as N/A. These missing values make it hard to assess the affordability of acquiring properties in this ZIP code, indicating a lack of recent transaction data which could be crucial for making informed investment decisions.
Lastly, the tenant demand appears to be moderate. The ZIP code has a population of 1,068, with 29.1% of residents being renters. While this shows a significant portion of the population is looking for rental housing, the relatively small population size means the total number of potential tenants is limited.
In conclusion, while there is a segment of the population seeking rental accommodation in ZIP 72717, the discrepancy between FMR and market rent poses a risk for landlords aiming to maximize their income. The lack of detailed acquisition data makes it challenging to determine the feasibility of purchasing properties in this area. Investors should proceed with caution, focusing on understanding local market dynamics and the potential for rental income alignment with FMR guidelines.
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.