Location: Texarkana, AR | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 75570 might have several concerns regarding the feasibility of renting properties under the Section 8 program. Here's a direct analysis addressing those concerns.
The first objection is whether the Fair Market Rent (FMR) of $910 for the fiscal year 2024 will sufficiently cover the mortgage on a home valued at $175,890. This concern stems from the belief that rental income should comfortably support the mortgage payments. According to recent housing data, the average mortgage payment for a property in this price range, assuming a 30-year fixed-rate mortgage at an interest rate of around 5%, would be approximately $930. While the FMR is slightly lower than the average mortgage payment, it's important to note that this calculation does not account for potential down payments or any assistance programs that could reduce the monthly mortgage burden. Additionally, landlords often negotiate higher rents within the FMR limit, which can help bridge the gap.
The second objection revolves around the renter demand in ZIP 75570, which stands at 24.3%. This percentage indicates that nearly a quarter of the population is renters, but some investors might question if this demand is sufficient. To put this into perspective, the national average for renter households is around 36%. Although 24.3% is below the national average, it still represents a significant portion of the local population. Moreover, the demand for affordable housing, particularly in areas with a high cost of living, tends to remain steady even when overall rental rates are low. The presence of a substantial number of low-income families who rely on housing assistance further supports the stability of rental demand.
The third objection is whether the Housing Choice Voucher (HCV) program will keep pace with market rents, currently averaging $805. The HCV program aims to cover the difference between what a low-income family can afford and the actual market rent, up to a certain limit. In ZIP 75570, the voucher amount is expected to adjust annually based on the local cost of living and other economic factors. However, the data does not provide a precise figure for the upcoming adjustments. It's crucial for landlords to monitor these changes closely to ensure they are adequately compensated. Historical trends suggest that while there might be delays, the voucher amounts eventually align with market conditions to prevent widespread eviction among assisted families.
In summary, while there are valid concerns about covering mortgage payments, sustaining renter demand, and keeping pace with market rents, the data suggests that ZIP 75570 offers a viable opportunity for landlords and small-portfolio investors interested in the Section 8 program. Careful planning and monitoring of local housing and economic trends will be key to navigating these challenges effectively.
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.