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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
U.S. Census Bureau data (2024)
Step 1: Evaluate if the FMR of $1050 can cover debt service.
The first question to ask is whether the Fair Market Rent of $1050 per month in ZIP 72035 for fiscal year 2024 can adequately cover the debt service on a property. This means calculating the monthly mortgage payments, property taxes, insurance, and other fixed costs. If these expenses exceed $1050, then the answer is a clear No. Landlords must ensure that the FMR can support their financial obligations without relying on additional income sources.
Step 2: Compare market rent to FMR.
The second critical point is to compare the market rent in ZIP 72035 to the FMR. If the market rent is above $1050, landlords might consider holding off on Section 8 properties until they can secure higher-paying tenants. A market rent above FMR suggests it's better to wait; at FMR indicates a neutral position where market conditions match Section 8 rates; and below FMR points towards a favorable environment for Section 8 investments.
Step 3: Assess tenant demand and Days on Market (DOM).
The final step involves evaluating the percentage of renters in the area and the average Days on Market for rental listings. If the percentage of renters is high and the DOM is short, indicating strong demand, then the answer is a clear Yes. However, if the demand is low or the DOM is long, it depends on whether you can attract and retain Section 8 tenants effectively. High demand and quick turnover suggest stability and profitability.
In summary, for ZIP 72035, landlords should first ensure that the FMR of $1050 can cover all their financial obligations. Next, they should check if the market rent is above, at, or below this rate. Lastly, they need to confirm that there is sufficient tenant demand and that properties are rented quickly. Each of these steps guides the decision towards buying a Section 8 property or waiting for more favorable conditions.
Note: The placeholders 'N/A' indicate missing or unspecified data which would typically be filled with specific values relevant to the ZIP code analysis. For a precise decision, these values must be determined based on current market and financial data.
Data Sources: FMR data from HUD (2027). 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.