Location: Yell County, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 72853 in Yell County, Arkansas, reveals a strong opportunity for positive cash flow. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $830 per month, whereas the market rent based on Census ACS data is significantly lower at $574 per month. This indicates that voucher tenants can easily cash flow at the HUD FMR, providing a substantial buffer for landlords.
To further understand the rental market dynamics, it's important to note that the median home value in the area is not available, which means we cannot directly calculate a rent-to-price ratio. However, the gap between the HUD FMR and the actual market rent suggests that rental properties are undervalued compared to their potential income-generating capacity. This undervaluation can be advantageous for investors looking to acquire properties at a lower cost while still benefiting from higher rental rates.
The days on market (DOM) and the percentage of price cuts are also not available, but given the disparity between the HUD FMR and the market rent, it's likely that rental properties are more attractive to tenants than buying homes. This dynamic supports the strength of the rental market over the homebuying market, making it an ideal time for investors to focus on rental properties.
The strongest investor angle in ZIP 72853 is undoubtedly cash flow. With voucher tenants paying above the market rate, landlords can expect steady and reliable income, which is crucial for maintaining profitability and covering operational costs. This scenario presents a low-risk, high-reward investment opportunity for those interested in the Section 8 housing market.
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.