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 | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $151,310 | 0.75% | D |
| 3BR | $1,530 | $226,723 | 0.67% | D |
| 4BR | $1,840 | $326,498 | 0.56% | F |
| 5BR | $2,134 | $470,506 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 72023, located in Cabot, AR, presents an interesting balance between yield and stability for real estate investors. With a Fair Market Rent (FMR) of $1,090 for fiscal year 2024, it falls below the market rent of $1,429 but significantly above the average home value of $251,910. This suggests a higher potential rental yield compared to the purchase price, making it attractive for those looking to capitalize on rental income.
However, the stability of the market is somewhat mixed. The area has a relatively low percentage of renters at 27.1%, indicating that a substantial portion of the population owns their homes rather than renting. Additionally, the days on market (DOM) stands at 50 days, which is longer than what might be seen in a highly stable rental market. This could imply some level of competition among landlords or difficulty in finding tenants quickly.
Income levels in the area are moderate, with an average household income of $76,931. While this provides a reasonable base for rental demand, it also means that there is a limit to how much rent can be charged before becoming unaffordable for many residents. Given these factors, ZIP 72023 leans towards being a steady-cashflow zone. Although the yield is decent due to the disparity between FMR and home values, the lower renter percentage and extended DOM suggest a market that requires careful management and possibly a bit of patience to achieve consistent cash flow.
To summarize, the key figures driving this assessment are:
These elements collectively point to a market where investors can expect solid returns but must manage expectations regarding rapid turnover and high rental rates.
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.