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 | $930 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $332,910 | 0.53% | F |
| 4BR | $2,140 | $410,855 | 0.52% | F |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 72745 for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,110 cover the debt service on a property valued at $356,765?
No. The FMR of $1,110 does not clear the debt service on a $356,765 property. For a typical mortgage scenario, the annual debt service would be higher than the yearly rental income based on FMR alone.
2) Is the market rent of $1,909 (ZORI) above, at, or below the FMR?
The ZORI of $1,909 is above the FMR of $1,110. This indicates that the local market rent is significantly higher than what the government subsidizes for Section 8 tenants. Landlords can potentially earn more by renting to non-Section 8 tenants.
3) Are 28.6% renters plus the unknown days on market (DOM) sufficient demand for Section 8 properties?
It depends. With 28.6% of residents being renters, there is a notable portion of the population who might rely on Section 8 vouchers. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly Section 8 properties are rented out. A high DOM could indicate low demand, whereas a low DOM suggests strong demand.
If the landlord's primary goal is to ensure that rental income covers the debt service, then investing in ZIP 72745 for Section 8 properties is not advisable. The FMR of $1,110 is insufficient to meet the financial obligations of a $356,765 property. However, if the landlord is willing to consider other forms of tenancy beyond Section 8, the higher market rent of $1,909 offers a better financial outlook.
Regarding demand, while the percentage of renters is substantial, the absence of DOM data leaves uncertainty about the speed at which properties can be filled. If the DOM is short, indicating quick turnover, then the demand for Section 8 properties is likely sufficient despite the lower FMR. Conversely, if the DOM is long, it could signal a challenge in filling units, even with a significant portion of renters.
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.