Location: Fort Smith, AR | Metro: Fort Smith, AR-OK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
ZIP 72904, located within the Fort Smith, AR-OK MSA metro area, serves as an ideal diversifier within a Section 8 portfolio strategy. The median home value stands at $113,948, which aligns closely with the Fair Market Rent (FMR) for the fiscal year 2024, set at $890. This indicates that the area is stable and not prone to significant fluctuations in property value.
The renter share in ZIP 72904 is 46.9%, reflecting a substantial portion of the population who are likely to rely on government assistance such as Section 8 vouchers. With a median income of $41,909, many residents may find it challenging to afford market-rate rents, currently estimated at $848. This makes the area suitable for landlords who wish to secure a steady stream of tenants through the Section 8 program.
A key factor supporting ZIP 72904 as a diversifier is the low price-cut share of 0.3%, indicating that properties here do not often require reductions in asking price to attract buyers. Additionally, the lack of data on days on market (DOM) suggests that listings either sell quickly or remain relatively constant without significant changes in demand, further stabilizing the investment environment.
In summary, ZIP 72904 offers a balanced approach for investors looking to diversify their Section 8 portfolios. The area's stability in terms of home values and the significant renter share provide a reliable tenant base. Moreover, the low price-cut share and consistent market conditions make it less risky compared to areas with higher volatility. For small-portfolio investors, this ZIP code presents a practical opportunity to maintain a steady cash flow while minimizing the risk associated with rapid market changes.
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.