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 |
The Section 8 housing market in ZIP code 72765, located within the Fayetteville-Springdale-Rogers County and the larger Fayetteville-Springdale-Rogers, AR MSA metro area, presents unique challenges and opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for this region in fiscal year 2024 is $1060. This figure serves as the benchmark for determining rental assistance payments under the Section 8 program.
However, without specific market rent data for ZIP 72765, it's difficult to accurately assess how voucher tenants will perform in terms of cashflow. Typically, if the HUD FMR closely aligns with the market rent, voucher tenants can cashflow at or near the FMR. If the market rent significantly exceeds the FMR, then cashflow might only be achieved with premium units that offer better amenities or are in higher-demand locations. Conversely, if the market rent is lower than the FMR, landlords could see positive cashflow even with standard units.
The median home value in the area is also listed as N/A, which means deriving a precise rent-to-price ratio isn't possible. Nevertheless, understanding the local real estate market's rent-to-price ratio can provide insights into the broader rent-versus-buy dynamics. A high rent-to-price ratio suggests renting is more favorable, potentially increasing demand for rental properties among voucher holders.
With the median Days on Market (DOM) and percentage of price cuts also listed as N/A, we cannot quantify the exact trends in property sales that might influence rental investment decisions. However, these metrics are crucial for gauging the health of the real estate market and how it impacts the rental sector. High DOM values and significant price cuts indicate a buyer's market, which could make it harder to sell homes but might lead to more competitive rental pricing.
The strongest investor angle in ZIP 72765 appears to be stability. Given the lack of detailed market rent data, focusing on areas where rents are steady and close to the HUD FMR can ensure consistent cashflow. Stability in rental income is particularly important for Section 8 investments due to the long-term nature of tenant stays and the reliance on government funding.
Data Sources: FMR data from HUD (2027).
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.