Location: Fort Smith, AR | Metro: Fort Smith, AR-OK MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $152,777 | 0.67% | D |
| 3BR | $1,380 | $221,367 | 0.62% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP code 72903, located in Fort Smith, AR, and part of the Fort Smith, AR-OK MSA metro area, does not work favorably for landlords participating in the Section 8 program. The Fair Market Rent (FMR) set at $890 for the fiscal year 2024 is significantly lower than the market rent, which stands at $1,191 as indicated by the Zillow Observed Rent Index (ZORI). This gap suggests that landlords might struggle to cover costs and maintain profitability under the Section 8 guidelines.
Regarding acquisition affordability, the median home value of $238,459 offers a reasonable entry point for investment. However, the average Days on Market (DOM) of 77 days and a mere 0.2% share of homes experiencing price cuts indicate a stable but slightly less dynamic market for property acquisition. These metrics suggest that while properties are not heavily discounted, they also do not stay on the market for extended periods, allowing for steady, if not rapid, turnover.
Tenant demand in ZIP 72903 is strong, with a population of 27,242 and a substantial 47.2% of residents being renters. This high percentage of renters signals a robust pool of potential tenants, particularly for those seeking housing assistance through the Section 8 program.
In summary, while the rent math does not favor landlords due to the disparity between FMR and market rents, the acquisition cost remains reasonable with a stable market for property sales. Tenant demand is robust, offering a consistent flow of potential occupants. Therefore, for landlords willing to accept lower rental income and for small-portfolio investors looking for a steady market, ZIP 72903 presents a viable opportunity, especially given the high proportion of renters who may benefit from Section 8 subsidies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.