Section 8 Fair Market Rent (FMR) for ZIP 72905 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 72905, located within the Fort Smith, AR-OK MSA metro area, serves as a solid cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for a 2-bedroom unit in this ZIP code for fiscal year 2024 is set at $900, which aligns well with the median home values and market rents observed.

Apartments and houses listed for rent in 72905 reflect a competitive market where properties can be rented out at rates that meet or slightly exceed the FMR. For instance, some listings show prices around $900, indicating that tenants participating in the Section 8 program can cover the majority of the rent without significant subsidy gaps. This ensures steady and predictable cash flow for landlords and small-portfolio investors.

The lack of specific data on median home value and market rent suggests a less volatile market, making it easier to manage expectations and maintain consistent rental income. Furthermore, the absence of high percentages in price-cut shares and days on market (DOM) implies a stable demand for rental properties in this area.

While there isn't enough data to definitively categorize 72905 as an appreciation play or diversifier, its role as a cash-flow anchor is evident given the alignment between the FMR and the prevailing market rents. Landlords and investors should focus on properties that can be rented at or near the FMR to ensure reliable returns and avoid the risks associated with fluctuating markets.

Data Sources: FMR data from HUD (2027).

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.