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 72738 within the Fayetteville-Springdale-Rogers, AR MSA reveals several key points regarding its viability for Section 8 real-estate investment.
Firstly, the rent math does not favor Section 8 participation. The Fair Market Rent (FMR) for FY 2024 is set at $930, whereas the current market rent stands at $731 according to the Census ACS. This discrepancy means that landlords participating in the Section 8 program would receive less than the market rate, potentially leading to financial losses unless they can manage costs effectively below the FMR level.
Secondly, the acquisition cost of properties in ZIP 72738 is moderate, with a median home value of $357,460. However, without specific data on the number of days on market (DOM) and the percentage of homes requiring price cuts, it's challenging to gauge the exact affordability and competitiveness of the market. These metrics would provide insights into how quickly and easily homes can be sold or purchased, affecting the overall cost of entry for potential investors.
Thirdly, there is a notable tenant demand, with a population of 2,688 and 20.6% of residents being renters. This indicates a steady pool of potential tenants, which is crucial for maintaining occupancy rates and ensuring a stable income stream for rental properties.
In summary, while ZIP 72738 presents a reasonable opportunity for rental property investment due to its tenant demand, the economics of Section 8 participation are unfavorable given the lower FMR compared to market rents. Landlords should carefully consider their ability to manage properties at a lower revenue threshold and assess local market conditions beyond the provided data to make informed decisions. The median home value suggests an initial capital outlay that must be balanced against the lower potential rental income to determine if the investment aligns with financial goals.
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.