Location: Texarkana, AR | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
In ZIP code 75574, there are several factors that could pose challenges for a landlord considering Section 8 investments. Firstly, the tenant turnover rate is a significant concern when comparing the market rent, which is currently unavailable, to the Fair Market Rent (FMR) of $920 set for FY 2024. This discrepancy can lead to instability in occupancy and income, as landlords might struggle to find tenants willing to pay the FMR. Secondly, the vacancy exposure is heightened due to the unknown number of days on the market (DOM), making it difficult to predict how long properties might remain vacant between tenancies. Additionally, the deferred maintenance exposure is a critical issue, especially considering the typical home value of $202,629 and the median income of $75,824. These figures suggest that many residents may not have the financial capacity to maintain their homes adequately, potentially leading to higher repair costs for landlords.
However, these risks must be weighed against the high density of renters in the area, represented by the 4.7% renter share. Despite this percentage being relatively low compared to other metropolitan areas, it still indicates a substantial number of potential voucher holders who could be interested in renting properties. High renter density generally correlates with higher demand for rental properties, particularly those accepting Section 8 vouchers. This demand can stabilize the occupancy rates and provide a steady stream of income, mitigating some of the risks associated with tenant turnover and vacancy.
The verdict for ZIP code 75574 as a first-time Section 8 landlord is moderate risk. While there are notable risks such as uncertain market rents and potential deferred maintenance issues, the presence of a renter population with access to housing vouchers offers a buffer against prolonged vacancies and unstable income streams.
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.