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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $197,933 | 0.63% | D |
U.S. Census Bureau data (2024)
ZIP 74936, located in the Fort Smith, AR-OK MSA metro, can serve as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 74936 in fiscal year 2024 is set at $890, while the median market rent is $793. This creates a positive spread of $97, which means that properties rented through Section 8 can generate higher rental income compared to the local market. Additionally, the median home value in the area is $184,848, indicating that property acquisition costs are relatively low.
The median household income in ZIP 74936 is $56,336, slightly below the national average but still sufficient to support a stable tenant base. With a 27.8% renter share, there is a significant demand for rental properties, making it an attractive location for landlords and small-portfolio investors. The relatively low median home value and modest income levels suggest that the area is less prone to rapid price increases, reducing the risk of appreciation plays and focusing more on steady rental income.
Furthermore, the data shows that 72% of occupied housing units are owner-occupied, indicating a strong potential for rental properties to fill the remaining 28%. This mix supports the idea of ZIP 74936 being a reliable cash-flow anchor rather than an appreciation play, given the lack of significant price-cut shares and days on market (DOM) trends.
In conclusion, ZIP 74936 should be considered as a cash-flow anchor within a Section 8 portfolio due to the favorable FMR-to-market rent spread and the area's economic profile.
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.