Location: Logan County, AR | Metro: Logan County, AR
| 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 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 72863 in relation to Section 8 housing presents several challenges that landlords must consider before entering into such agreements. Tenant turnover is a significant concern, especially when the market rent stands at $710 compared to the Fair Market Rent (FMR) of $880 for fiscal year 2026 in the metro area. This disparity suggests a higher likelihood of tenants seeking out more affordable options, leading to increased turnover rates.
Vacancy exposure is another critical issue. The average number of days on the market (DOM) is not available, which makes it difficult to predict how long properties might remain vacant. A prolonged period without tenants can lead to significant financial losses for landlords, particularly if they are relying on rental income to cover mortgage payments and other expenses.
Deferred maintenance is also a notable risk factor. With a median income of $64,773, the typical homeowner in ZIP 72863 may struggle to invest in regular property upkeep. This can result in higher maintenance costs for landlords, as they may need to address deferred repairs to meet the standards required by the Section 8 program.
However, these risks must be weighed against the strong potential for tenant demand. The renter share in ZIP 72863 is 11.1%, indicating a relatively high concentration of renters. High renter density generally correlates with a greater demand for housing vouchers, providing a steady stream of potential tenants who are committed to paying their rent through the Section 8 program.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 72863 suggests a moderate risk for a first-time Section 8 landlord. While there are risks involved, the presence of a substantial number of renters provides a buffer against some of these concerns, making it a viable option for those willing to manage the associated risks.
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.