Location: Little Rock-North Little Rock-Conway, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $227,611 | 0.66% | D |
| 4BR | $1,810 | $361,948 | 0.5% | F |
| 5BR | $2,100 | $584,118 | 0.36% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 72002 stands at $85,502. Considering the market rate for rent is $1,074, a household would need to allocate approximately 29% of their gross annual income towards housing costs. This calculation is derived from the annualized market rate of $12,888 (12 months * $1,074), which represents nearly three-tenths of the average yearly income.
In contrast, the Fair Market Rent (FMR) as determined by the Housing Choice Voucher program for zip code 72002 in fiscal year 2024 is set at $1,050. This means that the voucher payment is slightly below the market rate, but still relatively close. For households receiving vouchers, the rental cost would be around 27% of their annual income, assuming the voucher covers the full FMR amount.
The population of ZIP 72002 is 21,495, with 15.6% being renters. This translates to roughly 3,361 individuals or families who are currently renting. The affordability gap between the median income and the market rate rent suggests that many renters might find it challenging to pay market rates without assistance. Consequently, landlords who accept vouchers may find themselves competing with those who seek fully cash-paying tenants.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while accepting vouchers ensures a steady stream of rental income, it may also limit the pool of potential tenants to those eligible for assistance. On the other hand, focusing on cash-paying tenants could attract higher-income residents willing to pay the market rate, though this strategy might face greater competition due to the overall affordability challenges in the area.
To summarize, the choice between vouchers and cash-paying tenants should be informed by an understanding of the local rental market dynamics and the financial needs of both the landlord and the prospective tenant base. Landlords should consider the stability of voucher payments versus the potentially higher rents from cash-paying tenants when making their decision.
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.