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 | $1,140 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,780 | $229,348 | 0.78% | D |
| 4BR | $2,150 | $297,472 | 0.72% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 72007, located within the Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area, reveals several key points that are essential for landlords and small-portfolio investors.
The rent math does not work favorably for Section 8 tenants. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,180, whereas the Census ACS reports a market rent of $1,299. This discrepancy means that landlords might face a shortfall if they rely solely on Section 8 payments, as the market rate exceeds the FMR by approximately $119 per month.
Regarding acquisition affordability, the median home value in ZIP 72007 stands at $250,775. However, the lack of data on days on market (DOM) and the low percentage of homes that have had their prices cut (0.2%) suggest that the housing market is relatively stable. While the median home value is high, the absence of significant price reductions indicates that acquiring property may be challenging without a substantial investment.
Tenant demand is moderate. With a total population of 10,579, 16.2% of residents are renters. This translates to roughly 1,711 potential Section 8 tenants. Although the number of renters is not negligible, it also implies that competition among landlords for these tenants could be fierce.
Verdict: ZIP 72007 presents a scenario where the financial viability of Section 8 properties is questionable due to the lower FMR compared to market rents. The acquisition cost is high, with no significant discounts available, which may deter smaller investors. Tenant demand exists but is limited, making it necessary for landlords to consider other factors such as location, property condition, and local rental market dynamics before investing. Overall, while there is a presence of potential tenants, the economic conditions and high acquisition costs make this area less attractive for Section 8 investments.
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.