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 | $1,340 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,550 | $312,094 | 0.82% | C |
| 4BR | $3,080 | $409,605 | 0.75% | D |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 72751 for Section 8 investment, follow these steps:
Step 1: Clearing Debt Service
The Fair Market Rent (FMR) for ZIP 72751 in fiscal year 2024 is $1680. For a property valued at $349,988, calculate your debt service costs. If the $1680 monthly payment does not cover your mortgage, insurance, and maintenance expenses, then the answer is No. If it does, proceed to the next step.
Step 2: Market Rent Comparison
The Zillow Observed Rental Index (ZORI) for ZIP 72751 is $1,847 per month. Compare this figure to the FMR of $1680. Since ZORI is higher than FMR, there is potential to charge market rent to non-Section 8 tenants, which could be beneficial. However, if you're strictly considering Section 8 tenants, this difference means you will be earning less than market value. This scenario suggests that the answer is It Depends on whether you plan to exclusively lease to Section 8 tenants or diversify your tenant pool.
Step 3: Demand Analysis
In ZIP 72751, 18.1% of residents are renters. The Days on Market (DOM) is listed as N/A, indicating insufficient data to assess how quickly properties are typically rented out. Given the limited rental population, it's crucial to evaluate the local demand carefully. If you can secure a consistent stream of Section 8 tenants, the answer is Yes. Otherwise, with the uncertainty around DOM, the answer remains It Depends.
Make your decision based on these factors and your tolerance for risk. Remember, Section 8 investments come with their own set of rules and regulations, so ensure you are prepared to comply with all requirements.
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.