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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $240,589 | 0.6% | D |
| 4BR | $1,740 | $334,073 | 0.52% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 72022 presents a nuanced picture for both landlords and small-portfolio investors, particularly when considering the interplay between home values and rental dynamics. With a median home value at $253,978, the area reflects a stable residential market. The fact that only 0.2% of listings have been reduced signals strong seller pricing power, suggesting that home values are likely to remain firm or potentially increase slightly over the next 12-24 months.
The median days on market (DOM) being listed as N/A could indicate either an extremely efficient local real estate market or a lack of sufficient recent sales data. Regardless, the low percentage of price reductions suggests that homes are selling relatively quickly, which supports the idea of a robust market where demand meets supply effectively.
On the rental side, the Fair Market Rent (FMR) for ZIP 72022 is set at $1060 for fiscal year 2024, compared to the current market rate of $999 based on Census ACS data. This gap indicates a potential upward pressure on rents, as landlords may be able to justify higher rates to align with government guidelines. However, it's important to note that while FMRs serve as a benchmark, actual market conditions will determine how quickly and to what extent rents can rise.
For long-term investors, the appreciation thesis in ZIP 72022 is grounded in the stability of home values and the slight positive trend suggested by the low percentage of price reductions. The potential for modest appreciation, coupled with the possibility of increasing rental income, offers a compelling case for holding properties in this area. However, the lack of significant historical appreciation data means that the growth is expected to be steady rather than explosive.
Landlords and small-portfolio investors should focus on maintaining property quality and positioning their rentals competitively to capitalize on the growing rental market. As the gap between FMR and current market rates narrows, the opportunity to adjust rents upwards without losing tenants becomes more feasible, enhancing the overall investment returns.
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.