Section 8 Fair Market Rent (FMR) for ZIP 72944 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$680
1 Bedroom	$700
2 Bedrooms	$920
3 Bedrooms	$1,210
4 Bedrooms	$1,440
5 Bedrooms	$1,670
6 Bedrooms	$1,870
7 Bedrooms	$2,020
8 Bedrooms	$2,121

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,599

Median Household Income

$46,419

Housing Units

1,292

Renter Percentage

22.5%

Occupancy Rate

80.3%

Renter Occupied

234

A landlord considering purchasing a property in ZIP code 72944 for Section 8 purposes must evaluate several key factors to make an informed decision.

Step 1: Can the Fair Market Rent (FMR) cover debt service?

The FMR for ZIP 72944 is $890 for the fiscal year 2024. For a property valued at $174,369, the ability of this FMR to cover debt service depends on the interest rate and term of the mortgage. Assuming a typical 30-year fixed-rate mortgage at a current average rate of 6%, the monthly principal and interest payment would be approximately $1,045. At this rate, the FMR of $890 does not fully cover the debt service, resulting in a shortfall of $155 per month. Therefore, the answer to this question is No.

Step 2: How does market rent compare to the FMR?

The market rent in ZIP 72944, according to Census ACS data, is $781. This figure is below the FMR of $890. This suggests that landlords participating in Section 8 can expect to receive slightly higher rents than what the market offers, providing a potential financial advantage. The answer to this question is that market rent is below FMR.

Step 3: Is there sufficient rental demand?

In ZIP 72944, 22.5% of residents are renters. However, the data indicates that the days on market (DOM) is listed as N/A, which means we cannot accurately assess how quickly properties are rented out. Given the percentage of renters, there is some demand, but without knowing the DOM, it's difficult to determine if this demand is strong enough to ensure steady occupancy. The answer to this question is It depends.

Decision Tree Summary:

If you need the FMR to fully cover your debt service, then No, you should not buy in ZIP 72944.
If you are willing to accept a subsidy that pays slightly more than the market rent, then you might consider buying, given that the market rent is below FMR.
If you can tolerate uncertainty regarding the speed of renting out properties, then the percentage of renters being 22.5% could still support a Yes decision. Otherwise, the lack of DOM data makes it hard to justify a purchase, leading to an It depends conclusion.

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.