Section 8 Fair Market Rent (FMR) for ZIP 72855 - 2027

Location: Logan County, AR | Metro: Franklin County, AR

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$640
1 Bedroom	$840
2 Bedrooms	$910
3 Bedrooms	$1,200
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,167

Median Household Income

$54,089

Housing Units

2,869

Renter Percentage

18.8%

Occupancy Rate

89.4%

Renter Occupied

481

The zip code 72855, located in Arkansas, presents a modest yet stable rental market for landlords and small-portfolio investors. This area is characterized by a blend of residential neighborhoods that offer both homeownership and rental opportunities. The following analysis delves into key metrics that can guide investment decisions.

Fair Market Rent (FMR): For fiscal year 2024, the FMR for a two-bedroom apartment in ZIP 72855 is set at $810, indicating a reasonable level of demand for affordable housing.
Market Rent: According to Census ACS data, the average market rent for the area is $647, suggesting that there is potential for increasing rents to approach the FMR without alienating tenants.
Median Home Value: The median home value in ZIP 72855 stands at $148,974, which is relatively low compared to other regions, making it an attractive option for first-time buyers and investors looking for entry-level properties.
Renter Share: With 18.8% of households being renters, there is a steady base of tenants, although the majority of residents still prefer owning their homes.
Days on Market (DOM): The data does not provide specific days on market for rentals, but the low median home value suggests a quick turnover rate for sales, which can be indicative of a dynamic local real estate market.
Median Income: The median household income in the area is $54,089, which supports the affordability of the rental market and the potential for moderate increases in rent without causing significant hardship to tenants.

In summary, ZIP 72855 offers a balanced real estate environment where the rental market, while not booming, is solid enough to support steady returns. Investors should focus on properties that can be rented close to the FMR of $810, given the current market rent of $647. The low median home value and median income levels suggest that there is room for growth in rental prices, aligning with the FMR. However, the majority of residents owning homes indicates that the area is primarily suited for those interested in smaller-scale rental investments rather than large portfolios.

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.