Location: Newton County, 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 72742 reveals several key points regarding its suitability for real estate investment, particularly focusing on the Section 8 housing program.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 72742 in fiscal year 2024 is set at $840. However, the lack of available market rent data makes it challenging to directly compare these figures. Landlords should proceed with caution, as they need to ensure that the FMR covers their operational costs and desired profit margins.
Regarding the affordability of acquisitions, the absence of specific median home values, days on market (DOM), and percentage of price cuts indicates incomplete data. This gap means investors cannot make precise judgments about how competitive the area is for buying properties or how long it typically takes to sell a property. Without these details, the acquisition process remains uncertain.
Tenant demand is another critical factor. ZIP 72742 has a population of 400, with a strikingly low 0.0% renter share. This suggests that almost no residents in the area are renters, which poses significant challenges for finding tenants interested in Section 8 housing. The scarcity of potential tenants could lead to prolonged vacancy periods and reduced occupancy rates.
In summary, ZIP 72742 presents substantial obstacles for Section 8 real estate investments due to limited market rent data, unknown acquisition metrics, and an almost nonexistent renter population. The low renter share of 0.0% implies a very narrow tenant pool, making it difficult to justify the investment given the current information. Investors should seek additional data and consider alternative ZIP codes with higher tenant demand and clearer financial parameters before committing resources to this area.
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.