Location: Fort Smith, AR | Metro: Fort Smith, AR-OK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 72945 within the Fort Smith, AR-OK MSA metro area reveals key insights for landlords and small-portfolio investors. Firstly, regarding the rent math, the Family Monthly Rent (FMR) set at $900 for the fiscal year 2024 does not align favorably with the market rent of $1,119 as reported by the Census ACS. This indicates that properties receiving Section 8 assistance may face a shortfall of $219 per month compared to the local rental market rates.
Secondly, the acquisition affordability in ZIP 72945 is questionable due to limited data points. The median home value is currently listed as N/A, which suggests a lack of comprehensive information on property pricing. Similarly, the days on market (DOM) and the percentage of homes with price cuts are also marked as N/A, making it difficult to assess how quickly homes sell and whether they require significant price adjustments. These gaps in data could imply either an underreported or less active real estate market, affecting the feasibility of acquiring new investment properties.
Thirdly, there is a notable tenant demand within the ZIP code. With a total population of 475 residents and 44.5% of them being renters, the demand for rental housing is present. However, the relatively small population size means that the overall number of potential tenants is limited, which could impact the scalability of investment opportunities in this area.
In conclusion, while there is tenant demand in ZIP 72945, the rent math does not work in favor of landlords participating in the Section 8 program. Additionally, the lack of detailed data on median home values, days on market, and price cut shares complicates the assessment of acquisition affordability. For small-portfolio investors considering Section 8 properties in this ZIP code, the financial viability and potential for scalable growth are constrained by these factors.
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.