Section 8 Fair Market Rent (FMR) for ZIP 72762 - 2027

Investment Score for ZIP 72762

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$940
1 Bedroom	$1,080
2 Bedrooms	$1,290
3 Bedrooms	$1,790
4 Bedrooms	$2,160
5 Bedrooms	$2,506
6 Bedrooms	$2,807
7 Bedrooms	$3,032
8 Bedrooms	$3,184

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,290	$243,755	0.53%	F
3BR	$1,790	$345,116	0.52%	F
4BR	$2,160	$499,465	0.43%	F
5BR	$2,506	$714,145	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 72762 (Springdale, AR) #### Section 8 Voucher Dynamics In Springdale, AR (ZIP 72762), the Fair Market Rent (FMR) for 2026 is set at $1390 for a two-bedroom unit. This figure is crucial for understanding how Section 8 vouchers can be utilized by tenants. The FMR is designed to reflect the average rent for a standard unit in the area, but it often falls short of actual rental prices. To assess the dynamics, we need to compare the FMR with the actual rents. According to the provided data, the Zillow median price for a two-bedroom home is $237,385. However, the price-to-FMR ratio is 14.2x, indicating that the actual rental prices are significantly higher than the FMR. For instance, if we assume a conservative annual rental yield of 5%, the monthly rent for a property priced at $237,385 would be approximately $989 per month. But given the high price-to-FMR ratio, it’s likely that actual rental rates are much closer to the FMR or even above it. The constraints for voucher holders are evident. With a 2BR FMR of $1390, which represents only 20.3% of the median household income ($82,228), many voucher holders will struggle to find affordable housing. The disparity between the FMR and actual rental rates means that landlords who accept Section 8 vouchers must be willing to rent their properties below market value, which could limit their pool of potential tenants. #### Affordability & Renter Profile Springdale has a population of 46,092, with 32.0% of residents being renters. This suggests a significant demand for rental housing, particularly among those who might benefit from Section 8 assistance. Given the occupancy rate of 94.6%, the rental market appears to be relatively tight, with limited vacancies available. The median household income in Springdale is $82,228, which places it above the national average. However, the fact that 20.3% of this income is required to cover the FMR for a 2BR unit indicates that there is still a segment of the population that struggles with affordability. This is especially true for low-income families who rely on Section 8 vouchers to secure housing. The high price-to-FMR ratio (14.2x) further underscores the challenge of affordability. It implies that the typical rental price for a 2BR unit is around $19,712 annually, which is significantly higher than what the FMR suggests. Therefore, the market is tight, and there is a strong need for affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 72762 presents both opportunities and challenges. The FMR for a 2BR unit is $1390, which is lower than the actual rental rates but still represents a substantial portion of the median income. To determine whether this ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a conservative estimate of operating costs (including mortgage payments, maintenance, insurance, and taxes) at 75% of the FMR, the net cash flow would be approximately $347.50 per month. This calculation is based on the following: - Monthly Rent: $1390 - Operating Costs: 75% of $1390 = $1042.50 - Net Cash Flow: $1390 - $1042.50 = $347.50 While this net cash flow is positive, it is quite modest. Moreover, the high price-to-FMR ratio suggests that investors might face difficulty finding properties to purchase at a price that allows them to achieve a reasonable return while renting at FMR. Given these factors, the investment grade for this ZIP code would be considered moderate. There is potential for positive cash flow, but the tight rental market and the high cost of acquiring properties make it a challenging environment for investors. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should seek properties where the rental income can be set slightly below the FMR to attract Section 8 voucher holders. For example, a 2BR unit rented at $1300 per month would still be attractive to voucher holders and provide a net cash flow of $257.50 per month, assuming the same operating costs. 2. **Consider Multi-Family Units**: Given the high FMR for larger units (e.g., 3BR at $1930 and 4BR at $2280), multi-family units might offer better returns. A 3BR unit rented at $1930 would have a net cash flow of $712.50 per month, which is significantly higher than a 2BR unit. 3. **Evaluate Property Values**: Since the price-to-FMR ratio is very high, investors should carefully evaluate property values to ensure they are not overpaying. Acquiring properties at a discount or through creative financing methods could improve the overall investment grade. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 72762 (Springdale, AR) is to **Hold**. While there is potential for positive cash flow, the tight rental market and high acquisition costs make it challenging to enter. Existing investors with properties already below FMR or in multi-family configurations may see better returns, but new investors should proceed cautiously and focus on affordability and strategic acquisitions. This ZIP code is not ideal for new investments due to the high price-to-FMR ratio, but it remains a viable option for existing investors looking to maintain their portfolios. The key is to find properties that offer a balance between affordability and profitability, ensuring that they remain attractive to both voucher holders and other 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.