Section 8 Fair Market Rent (FMR) for ZIP 75503 - 2027

Location: Texarkana, AR | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area

Investment Score for ZIP 75503

N/A

Monthly Rent (2BR)

$1,340

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,050
2 Bedrooms	$1,340
3 Bedrooms	$1,680
4 Bedrooms	$2,020
5 Bedrooms	$2,343
6 Bedrooms	$2,624
7 Bedrooms	$2,834
8 Bedrooms	$2,976

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,680	$243,099	0.69%	D
4BR	$2,020	$374,888	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

26,372

Median Household Income

$72,159

Housing Units

11,497

Renter Percentage

38.0%

Occupancy Rate

92.5%

Renter Occupied

4,039

To determine if a landlord should buy in ZIP code 75503 for Section 8 investment, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 75503 in fiscal year 2024 is $1140. Calculate if this amount clears the debt service on a property valued at $258,711.

If the DSCR is positive, meaning the $1140 FMR exceeds the debt service costs, then proceed to Step 2. Otherwise, the answer is No. A negative DSCR indicates that the rental income would not cover the mortgage payments, making the investment unviable.

Step 2: Compare ZORI to FMR

The Zero Occupancy Rate Index (ZORI), which represents the market rent, is $1,337. This figure needs to be compared to the FMR of $1140.

If the ZORI ($1,337) is significantly higher than the FMR ($1140), then the market is favorable for non-Section 8 tenants, which could mean lower demand for Section 8 units. The answer is It Depends, as landlords might prefer to target non-Section 8 tenants for better returns.
If the ZORI is around or slightly above the FMR, the market is balanced. Proceed to Step 3.
If the ZORI is below the FMR, the market is not favorable for non-Section 8 tenants, making Section 8 properties more attractive. The answer is Yes.

Step 3: Evaluate Rental Demand

In ZIP 75503, 38.0% of residents are renters, and the average days on market (DOM) is 90 days. These factors indicate moderate demand for rentals.

If the DOM is longer than 90 days, it suggests low demand. The answer is No. Landlords should look for areas with higher demand to ensure steady occupancy.
If the DOM is around 90 days, it indicates a balanced demand. The answer is Yes. With 38.0% of the population renting, there is sufficient demand for Section 8 properties.
If the DOM is shorter than 90 days, it implies high demand. The answer is Yes. High demand means a greater likelihood of finding suitable tenants quickly, reducing vacancy periods.

Based on the provided data, landlords should consider the DSCR first, then compare the ZORI to the FMR, and finally assess the rental demand. If all conditions align favorably, investing in ZIP 75503 for Section 8 properties is advisable. However, if any step indicates unfavorable conditions, reconsideration is necessary.

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.