Location: Little Rock-North Little Rock-Conway, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
The potential risks for investing in Section 8 housing in ZIP code 72018 in Unknown, AR, are significant. Tenant turnover is a critical issue, as the market rent is not specified but the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1070. This can lead to financial instability if the actual market rent is lower, causing landlords to rely heavily on Section 8 vouchers.
Vacancy exposure is another concern. The days on market (DOM) figure is not available, which makes it difficult to predict how long a property might remain vacant. A higher DOM would increase the risk of extended periods without rental income, especially if the landlord is dependent on Section 8 tenants.
Deferred maintenance is also a risk factor. With no data on the typical home value and median income in ZIP 72018, it's challenging to assess whether residents have the means to maintain their homes adequately. Poor maintenance can result in costly repairs and potential safety hazards, affecting both the property's value and the landlord's investment returns.
However, these risks must be weighed against the high concentration of renters in the area. The percentage of the population that rents is not specified, but a high renter share typically correlates with greater demand for Section 8 vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants, mitigating some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.