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 | $1,370 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $3,140 |
| 5 Bedrooms | $3,642 |
| 6 Bedrooms | $4,079 |
| 7 Bedrooms | $4,405 |
| 8 Bedrooms | $4,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,600 | $428,867 | 0.61% | D |
| 4BR | $3,140 | $596,335 | 0.53% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 72718 is dynamic, characterized by a clear distinction between the Fair Market Rent (FMR) and the actual market rent. With an FMR of $1680 for the fiscal year 2024, and a market rent of $2,238 according to the latest Census ACS data, it's evident that the rental market is robust and commands a premium over government benchmarks.
A price-cut share of just 0.2% suggests that landlords in this area rarely need to reduce their asking rents to attract tenants, indicating strong demand relative to supply. The median home value of $560,164 reflects a stable housing market, with properties holding their value well. This figure also implies that homeownership is a significant factor in the local economy, potentially limiting the number of units available for rental.
The 7.4% renter share in ZIP 72718 provides insight into the long-term housing pressures. Despite a relatively low percentage of renters, the high market rent compared to the FMR indicates that there is still considerable pressure on the rental market. This could be due to a growing population, increasing job opportunities, or other factors driving up demand for rental properties. Landlords should consider these dynamics when evaluating potential investments in the area.
In summary, ZIP 72718 presents a market where demand appears to be at least equal to, if not exceeding, supply. The low price-cut share and high market rent suggest that tenants are willing to pay above the FMR, pointing to a favorable environment for landlords. However, the limited renter share means that the rental market is smaller compared to homeownership, which could impact the overall investment strategy for those looking to enter the rental sector.
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.