Location: Fort Smith, AR | Metro: Fort Smith, AR-OK MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $135,707 | 0.71% | D |
| 3BR | $1,310 | $216,299 | 0.61% | D |
| 4BR | $1,610 | $325,512 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP 72956, located in Van Buren, Arkansas, within the Fort Smith, AR-OK MSA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The primary reason for this classification lies in the significant spread between the Fair Market Rent (FMR) and the market rent for the area. For fiscal year 2024, the FMR stands at $910, while the average market rent is $1,008. This $98 difference ensures that properties in this ZIP code can generate steady cash flow above the government-subsidized rates.
The median home value in ZIP 72956 is $205,169, which aligns well with the affordability of the FMR. Landlords and small-portfolio investors can expect reliable tenants who are subsidized by the government, ensuring consistent rental income without the risk of frequent vacancies. The low 0.2% price-cut share indicates that there is little need to reduce rents to attract tenants, further supporting the cash-flow stability.
The 47-day Days on Market (DOM) suggests that properties in this ZIP code are typically occupied quickly, minimizing vacancy periods and maximizing cash flow. Additionally, the 28.4% renter share and median income of $62,988 provide a stable tenant base with sufficient income to cover their living expenses, including rent.
In summary, ZIP 72956 offers a solid foundation for cash flow within a Section 8 portfolio due to its favorable FMR-to-market rent spread, quick occupancy rates, and a stable tenant population. These factors make it an attractive choice for investors seeking reliable and consistent returns.
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.