Location: Fort Smith, AR | Metro: Fort Smith, AR-OK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,240 |
| 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 Section 8 market analysis for ZIP code 72934, located in the Fort Smith, AR-OK MSA, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for FY 2024 stands at $890, significantly higher than the Census ACS-reported market rent of $700. This disparity indicates that voucher tenants can easily cashflow at the FMR level, providing a stable income source for property owners.
The median home value in ZIP 72934 is listed as N/A, which means we cannot calculate a precise rent-to-price ratio. However, given the high FMR relative to the market rent, it is evident that the rental market is undervalued compared to the potential income from Section 8 vouchers. This undervaluation suggests that investors can expect to see positive cash flow even without considering premium units.
With the median Days on Market (DOM) also listed as N/A, it's difficult to assess the speed at which properties are typically sold in this area. Similarly, the percentage of homes that experience price cuts before selling is also N/A, indicating limited data on the buying dynamics. Nevertheless, these metrics are less critical when focusing on the rental market, especially with the current voucher rates.
In conclusion, the strongest angle for investors in ZIP 72934 is the potential for strong cash flow, given the substantial gap between the HUD FMR and the current market rent. This scenario provides a reliable and steady income stream for those willing to participate in the Section 8 program.
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.