Location: Texarkana, AR | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75561 reveals a unique blend of yield and stability that presents an interesting opportunity for real-estate investors. The Fair Market Rent (FMR) for the area is set at $920 for the fiscal year 2024, which is notably lower than the current market rent of $988. This gap suggests a potential for higher yields if investors can secure properties below the FMR and lease them at market rates.
However, the average home value in the area stands at $159,996, which is a critical figure for calculating the overall investment return. Given the FMR and market rent figures, it's reasonable to expect a rental yield above the national average, making this a high-yield zone relative to property values.
On the stability axis, ZIP 75561 shows a mixed picture. With 27.5% of residents being renters, there is a decent demand for rental housing, though this percentage is not exceptionally high. The lack of data on the number of days on market (DOM) indicates that there might be limited volatility in rental listings, which could suggest a stable rental environment. However, without DOM data, this remains speculative. The median household income of $60,047 provides insight into the economic health of the area; this figure is relatively modest but sufficient to support a rental market, especially given the lower-than-average property values.
Considering these factors, ZIP 75561 leans towards a high-yield market rather than a steady-cashflow zone. The significant difference between the FMR and market rent, combined with the moderate home values, creates a scenario where flipping properties for rental income could be highly profitable. Yet, the somewhat limited renter population and modest income levels temper the expectation of high stability. Therefore, while the potential for high returns exists, investors should also consider the risk associated with a less stable rental market when making decisions about properties in ZIP 75561.
Data Sources: FMR data from HUD (2027). 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.