Section 8 Fair Market Rent (FMR) for ZIP 75505 - 2027
Location: Texarkana, AR | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
When considering whether to invest in ZIP 75505 for Section 8 properties, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $990 cover your debt service?
- No: Investing in ZIP 75505 would not be advisable if the FMR does not meet or exceed your debt service requirements. Debt service includes mortgage payments, property taxes, insurance, and other fixed costs. If these expenses exceed $990, you will incur a loss.
- Yes: Proceed to Step 2.
Step 2: How does the market rent compare to the FMR?
- Market Rent Below FMR: If the market rent is lower than the FMR of $990, you can still consider investing in ZIP 75505 because Section 8 tenants pay a portion of their income towards rent, with the government covering the difference up to the FMR. This ensures a stable income source that matches the FMR.
- Market Rent Equal to FMR: Proceed to Step 3. The market rent aligns with the FMR, which is ideal for maximizing returns while remaining competitive.
- Market Rent Above FMR: Proceed to Step 3. While the market rent exceeds the FMR, you must ensure there is sufficient demand for Section 8 units.
Step 3: Is there enough demand for Section 8 units?
- No: If the percentage of renters interested in Section 8 and the days on market (DOM) indicate low demand, investing in ZIP 75505 would likely result in vacancies and financial strain. Ensure there is a significant interest among renters and a reasonable DOM for Section 8 units.
- Yes: There is a strong case for investing in ZIP 75505 for Section 8 properties. With sufficient demand and an FMR of $990, you can secure a steady stream of rental income.
- It Depends: Evaluate the exact percentage of renters interested in Section 8 and the DOM figures. A high percentage of interested renters coupled with a low DOM suggests robust demand. Conversely, a low percentage of interested renters or a high DOM indicates weaker demand.
The final decision hinges on the alignment between the FMR, market rent, and tenant demand. If all conditions favor investment, proceed with confidence. Otherwise, reassess the ZIP code's suitability for your portfolio.
Data Sources: FMR data from HUD (2027).
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.