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 |
The market analysis for Section 8 investors targeting ZIP code 72737 in Fayetteville-Springdale-Rogers, AR MSA reveals that the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1060. This figure represents the maximum amount that voucher holders can pay towards their rent. However, without specific market rent data for ZIP 72737, it's challenging to provide a precise comparison. Given the lack of market rent data, we can infer that if the actual market rents are close to or below the FMR, voucher tenants would likely cashflow at the FMR rate. If market rents exceed $1060, then cashflow might only be possible with premium units or through strategic management practices.
The median home value for ZIP 72737 is also not available, which makes deriving an exact rent-to-price ratio impossible. Nonetheless, understanding the rent-to-price ratio is crucial for investors looking to gauge the overall health of the housing market and potential returns on investment. Typically, a lower rent-to-price ratio indicates a stronger rental market, but this cannot be confirmed without specific data.
Average Days on Market (DOM) and percentage of homes that required a price cut are also unavailable, but these metrics are important for assessing the balance between buying and renting. A high DOM suggests a buyer's market, while frequent price cuts indicate challenges in selling properties, both of which could influence the decision-making process for investors.
In summary, for Section 8 investors in ZIP 72737, the primary focus should be on securing units where the rent does not significantly exceed the HUD FMR of $1060. The strongest investor angle in this scenario is likely stability, given the reliance on government vouchers for income, which provides a consistent source of rental payments regardless of market fluctuations.
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.