Location: Franklin County, AR | Metro: Fort Smith, AR-OK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,210 |
| 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 ZIP code 72947 presents an interesting balance between yield and stability, making it a zone that leans towards providing steady cash flow rather than being a high-yield, low-stability market.
On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $890. This is notably higher than the market rent of $702, indicating a potential for above-average rental income when properties are occupied by tenants receiving housing assistance through Section 8. However, the home value in this area stands at $179,784, which is significantly lower than the FMR, suggesting that the overall investment cost is relatively low compared to the expected rental income.
Moving to the stability axis, the percentage of renters is 17.6%, which is relatively low. This suggests a predominantly owner-occupied area, which can be beneficial for long-term investment as it typically implies less turnover and potentially more stable occupancy rates. The median household income in this ZIP code is $58,640, which provides insight into the economic health of the area and the ability of residents to pay rent, further supporting the notion of stability.
While the data does not provide the number of days on market (DOM), the absence of this figure could indicate either a well-balanced market where properties sell quickly, or an underreported metric due to the nature of the data source. In the context of a low-renter percentage and a reasonable median income, it's likely that the market is stable, favoring long-term investments over quick flips.
In conclusion, ZIP 72947 offers a decent yield driven by the disparity between the FMR and market rent, coupled with a relatively low home value. Its stability is bolstered by a low percentage of renters and a moderate median income, making it more suitable for steady cash flow investments rather than high-risk, high-reward flipping strategies.
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.