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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $147,134 | 0.73% | D |
| 3BR | $1,440 | $218,709 | 0.66% | D |
| 4BR | $1,730 | $257,911 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 72032, located in Conway, AR, presents an interesting scenario when viewed from the perspective of renters. The median household income stands at $64,695, which provides a baseline for assessing the financial capacity of residents to cover rental expenses. The market rate for rentals, known as the Zillow Observed Rent Index (ZORI), is set at $1,250 per month. This figure represents the typical cost for housing in the area.
In comparison, the Fair Market Rent (FMR) for the fiscal year 2024 is pegged at $1,050. This is the amount that the Housing Choice Voucher program, commonly referred to as Section 8, would pay towards a tenant’s rent. It’s clear that there exists a significant gap between the market rate ($1,250) and the voucher payment standard ($1,050).
The population of ZIP 72032 is 34,469, with 36.6% of those being renters. Given the median income and the market rate for rentals, it becomes evident that a substantial portion of these renters may find it challenging to afford the average market rent without assistance. A household earning the median income would typically allocate around 22% of their gross monthly income to rent at the market rate, which is within the general guideline of not exceeding 30% of income for housing costs. However, this leaves little room for other essential expenditures such as utilities, food, and healthcare.
The affordability gap means that landlords in ZIP 72032 face stiff competition for tenants who can pay the full market rate. Many potential renters may lean towards finding housing that accepts vouchers due to the lower out-of-pocket costs. Landlords must consider this dynamic when deciding on their rental strategies.
The takeaway for landlords considering whether to accept voucher tenants or focus on cash-paying tenants is straightforward. While cash-paying tenants offer a higher monthly rental income, the likelihood of securing such tenants could be lower given the financial constraints many local households face. Accepting voucher tenants, despite receiving a lower rate, ensures a steady stream of income and reduces vacancy rates. Landlords should weigh the benefits of higher immediate cash flow against the stability and long-term sustainability provided by voucher programs.
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.