Location: Prairie County, 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 | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $174,417 | 0.8% | D |
U.S. Census Bureau data (2024)
The ZIP code 72024 is situated in a suburban area of Arkansas, characterized by a relatively small population of 3,998 residents. The demographic makeup is primarily homeowners, with only 20.1% of the population renting their homes. The median household income here stands at $58,750, which is modest but stable, reflecting a community where most individuals can manage basic living expenses without significant financial strain. The median home value in this area is $178,324, indicating a middle-class residential setting.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP 72024 in fiscal year 2024 is set at $900. This figure represents the maximum amount that a landlord can charge for a rental property under the Section 8 program. However, the actual market rent, according to Census ACS data, is significantly lower at $667. This discrepancy suggests that landlords participating in the Section 8 program could potentially receive higher rents compared to the local market rates, providing an opportunity for increased revenue.
The question then arises: Is this a suitable location for a hands-off voucher operator or a hands-on value-add buyer? Given the modest median income and the fact that a majority of residents are homeowners, it appears that ZIP 72024 would be well-suited for a hands-off voucher operator. The low percentage of renters indicates limited competition for Section 8 tenants, and the higher FMR compared to market rent ensures steady, predictable income. For a value-add buyer, however, the potential for increasing rents beyond the FMR is limited, making it less attractive for those looking to actively manage and improve properties for higher 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.