Section 8 Fair Market Rent (FMR) for ZIP 72908 - 2027

Location: Fort Smith, AR | Metro: Fort Smith, AR-OK MSA

Investment Score for ZIP 72908

N/A

Monthly Rent (2BR)

$1,020

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,380	$223,077	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

14,288

Median Household Income

$72,732

Housing Units

6,345

Renter Percentage

34.4%

Occupancy Rate

93.1%

Renter Occupied

2,034

ZIP code 72908, located in the heart of Arkansas, offers a stable real estate market for both landlords and small-portfolio investors. The area is characterized by modest housing values and a significant portion of renters, making it an attractive location for property investment.

The Fair Market Rent (FMR) for ZIP 72908 in fiscal year 2024 is set at $1,000, providing a benchmark for rental pricing that reflects the local housing costs.
The Zillow Observed Rent Index (ZORI), which represents the average market rent, stands at $1,216. This indicates that landlords can potentially charge above the FMR to stay competitive in the rental market.
The median home value in the area is $229,103, offering a relatively low entry barrier for new investments compared to other regions.
Renters make up 34.4% of the population, showing a substantial demand for rental properties and suggesting a steady stream of potential tenants.
The median income for residents is $72,732, indicating that there is enough economic stability to support consistent rental payments.

Synthesizing these points, ZIP 72908 presents a viable opportunity for real estate investment, especially for those looking to enter the rental market. With a median home value below the national average and a fair market rent that is lower than the actual observed market rent, there is room for profit margins. The significant share of renters in the area ensures a steady demand for rental properties, while the median income level suggests that tenants have the financial capability to meet their rental obligations. For landlords and small-portfolio investors, this ZIP code offers a balanced mix of affordability and demand, making it a solid choice for investment.

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.