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 | $121,434 | 0.8% | D |
| 3BR | $1,310 | $185,471 | 0.71% | D |
| 4BR | $1,610 | $287,433 | 0.56% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 74954, which encompasses Roland, OK, in Sequoyah County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $910. This figure is crucial because it determines the maximum amount that the housing authority will pay on behalf of a tenant receiving rental assistance.
Local market rent, according to Census ACS data, averages $857 for a similar two-bedroom unit. This means that the SAFMR exceeds the average market rent by $53. However, the actual reimbursement to landlords is not simply the SAFMR amount but rather a combination of the tenant's contribution and the voucher subsidy, plus any applicable utility allowances.
The tenant's portion is typically 30% of their adjusted income, which can vary widely depending on individual circumstances. For example, if a tenant has an adjusted income of $1,500 per month, they would contribute $450 towards rent. The remaining $460 (based on the SAFMR of $910) would be covered by the Section 8 voucher program, assuming no utility allowance adjustments.
In ZIP 74954, utility allowances are also part of the calculation. These allowances are designed to help cover the costs of electricity, gas, water, and sewage. The exact amount varies by location and season, but for simplicity, let’s assume an average utility allowance of $200. In this case, the total reimbursement to the landlord would be $660 ($460 for rent and $200 for utilities).
This scenario leaves a $153 surplus for the landlord, who is renting a two-bedroom unit at the market rate of $857. The surplus is calculated by subtracting the total reimbursement ($660) from the market rent ($857). Thus, landlords in ZIP 74954 can expect to receive more than the local market rate when renting to tenants with Section 8 vouchers, providing a financial buffer above the typical rental price.
It's important to note that these calculations are based on the specific SAFMR for ZIP 74954 and do not apply uniformly across the broader county or metropolitan area. Landlords should review individual tenant cases and utility allowances to understand the precise economics of each rental agreement.
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.