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)
To derive the rough Section 8 cap-rate picture for ZIP code 72760, we need to compare the Federal Market Rent (FMR) for a two-bedroom apartment against potential median home values and market rents.
The annualized FMR for a two-bedroom apartment in ZIP 72760 for fiscal year 2024 is $840. This figure represents the government-subsidized rental income that a landlord would receive per month. To calculate the implied gross yield using this FMR, we must assume a median home value. However, the median home value for ZIP 72760 is not available. Without this data, we cannot accurately determine the gross yield based on the FMR alone.
In the absence of a median home value, let's consider the market rent scenario. The market rent for ZIP 72760 is also not available, making it impossible to calculate an implied gross yield directly from this metric. Nonetheless, the FMR can still provide a benchmark for understanding the potential rental income from Section 8 tenants.
Given the 18.1% renter density in ZIP 72760, it is reasonable to assume that a significant portion of the housing stock could be occupied by renters, including those receiving Section 8 subsidies. However, without knowing the average days on market (DOM) for properties in this area, we cannot fully assess how quickly units might be filled and the stability of the rental income stream.
The gross yield comparison between the FMR and market rent is critical for investors. If the market rent were higher than the FMR, the gross yield based on market rent would be more favorable. Conversely, if the FMR is competitive with market rates, the yield from Section 8 could be quite attractive, especially considering the guaranteed income and lower vacancy risk associated with subsidized housing.
Despite the lack of specific market rent and median home value data, the FMR of $840 per month provides a clear baseline for potential rental income. For landlords and small-portfolio investors, this figure should be used alongside other local real estate metrics to form a comprehensive investment strategy.
Investors should also factor in the administrative ease and reliability of Section 8 payments when comparing yields. While the exact gross yield cannot be calculated without additional data, the stability and predictability of Section 8 income can be a significant advantage over fluctuating market rents.
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.