Location: Johnson County, AR | Metro: Johnson County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 72840 might raise several concerns regarding the feasibility of investing in rental properties here. Let's address these points directly using the available data.
Will FMR $880 (metro FY 2026) cover the mortgage on a $154,218 home?
The Fair Market Rent (FMR) of $880 in fiscal year 2026 does provide a benchmark for rental income, but it's essential to understand if this figure can realistically support a mortgage payment on a property valued at $154,218. To determine this, we need to calculate the expected monthly mortgage payment based on current interest rates and typical loan terms. However, without specific interest rate and loan term data, we cannot definitively state whether the FMR will cover the mortgage payments. It's important to note that FMRs are designed to ensure affordable housing options and may not reflect the actual market value needed to sustain a mortgage.
Is there enough renter demand at 18.9%?
The rental demand in ZIP 72840 stands at 18.9%, which is a crucial metric for any real estate investment. This percentage indicates the proportion of renters in the area compared to homeowners. While 18.9% might seem low, it's important to consider that this could still represent a substantial number of potential tenants given the local population size. Additionally, the demand for rental properties often correlates with factors such as job availability, student populations, and economic conditions, which are not detailed in the provided data. Therefore, while the 18.9% figure is informative, it alone does not paint a complete picture of the rental market's health in this ZIP code.
Will vouchers keep pace with $763 market rents?
The question of whether Housing Choice Vouchers will keep up with market rents of $763 requires an examination of voucher trends and funding levels. According to the data, the average voucher amount in the area has historically been lower than the current market rents. However, the U.S. Department of Housing and Urban Development (HUD) periodically adjusts voucher amounts to better match market conditions. Despite this adjustment mechanism, there is no guarantee that voucher amounts will always align with the $763 market rent level. Investors relying on voucher recipients should be prepared for potential shortfalls and the possibility of having to subsidize the difference between voucher amounts and actual 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.