Section 8 Fair Market Rent (FMR) for ZIP 72764 - 2027

Investment Score for ZIP 72764

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	$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

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	$1,220	$229,079	0.53%	F
3BR	$1,690	$303,146	0.56%	F
4BR	$2,000	$421,354	0.47%	F
5BR	$2,320	$713,265	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 72764 (Springdale, AR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Springdale, AR, as of 2026, indicate that a two-bedroom unit is priced at $1270 per month. This figure represents 23.1% of the median household income of $55,000 (derived from $65,898 * 0.833). The FMRs are designed to reflect the average rent levels for units in the area, but they do not always align with actual rental prices. In Springdale, the Zillow median price for a two-bedroom home is $221,629, which translates to a monthly mortgage payment of approximately $1,450 if financed over 30 years at a 4% interest rate. This means that the actual rents in the area are significantly higher than the FMRs, creating a constraint for voucher holders who can only pay up to the FMR amount. Consequently, voucher holders may struggle to find suitable housing options, particularly for larger units like three-bedroom ($1770) and four-bedroom ($2090) homes, where the FMR is notably lower than the typical market rates. #### Affordability & Renter Profile Springdale has a high renter population of 51.5%, indicating a significant demand for rental properties. The occupancy rate of 94.1% suggests that the rental market is relatively tight, with most available units being occupied. Given the median household income of $65,898, the affordability of rental units is a critical issue. For instance, a two-bedroom unit at the FMR of $1270 would consume 23.1% of the median income, which is still a substantial portion. This makes it challenging for renters, especially those relying on Section 8 vouchers, to find affordable housing. The high renter percentage combined with a tight occupancy rate implies that there is strong competition among renters, making it a seller's market where landlords have considerable leverage over pricing. #### Investor Angle From an investor's perspective, the ZIP code 72764 presents a mixed picture. The FMRs are lower than the actual market rents, which means that properties rented at FMR levels might not generate sufficient cash flow to cover operating expenses and provide a profit margin. For example, a two-bedroom unit at $1270 per month would need to compete with market rents that are much higher, potentially leading to vacancy issues. However, the high renter percentage and tight occupancy rate suggest that there is a strong underlying demand for rental properties, which could be leveraged by offering units that are slightly above the FMR but still below market rates. This strategy could attract tenants who are willing to pay more than the FMR but cannot afford the full market rate, thereby ensuring steady occupancy and cash flow. The investment grade for this ZIP code would be considered moderate due to the high renter population and tight occupancy rate, but the gap between FMR and actual market rents poses a challenge for cash flow. Investors should carefully consider the balance between rental income and operational costs before entering this market. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the Zillow median price for a two-bedroom home and the FMR, investors should focus on acquiring two-bedroom units. These units are likely to be the most sought-after by both voucher holders and other renters, given the high renter percentage and tight occupancy rate. A two-bedroom unit at $1270 per month, while below market rates, could still attract tenants who are looking for more affordable options. 2. **Offer Slightly Above FMR Rates**: To ensure steady cash flow and occupancy, investors might want to consider setting rental rates slightly above the FMR but still below the market rate. For instance, renting a two-bedroom unit at $1450 per month could attract tenants who are willing to pay more than the FMR but cannot afford the full market rate of around $1,450 based on the Zillow median price. This approach balances the need for profitability with the reality of the rental market dynamics. 3. **Consider Multi-Family Properties**: Given the high renter percentage, multi-family properties could offer a better opportunity for steady cash flow. Investing in complexes with multiple units, including a mix of one-, two-, and three-bedroom apartments, could help diversify the tenant base and mitigate risks associated with single-unit properties. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 72764 would be to **Hold**. While the market shows strong demand for rental properties, the gap between FMR and actual market rents creates challenges for cash flow. Investors should focus on properties that can be rented at slightly above FMR rates to ensure profitability, but they must also be prepared to navigate the complexities of the rental market dynamics. The high renter percentage and tight occupancy rate make it a viable market, but careful consideration of rental strategies is necessary to succeed. --- This analysis is based solely on the provided data and does not include any additional research or assumptions beyond what is explicitly stated.

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.