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 | $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 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 72047 within the Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area reveals several key insights for landlords and small-portfolio investors.
First, let's examine if the rent math works. The Fair Market Rent (FMR) for ZIP 72047 in fiscal year 2024 is set at $1000. However, the Census ACS data indicates that the market rent in this area is currently around $800. This suggests that landlords may struggle to charge the full FMR due to the prevailing market conditions, indicating a potential mismatch between government-set FMRs and actual market rents.
Second, regarding the affordability of acquisition, the data shows a median home value of N/A, which means it's not available or significant enough to affect the overall assessment. The average days on market (DOM) is also listed as N/A, implying either insufficient data or a stable market without prolonged listing periods. Additionally, the percentage of homes requiring a price cut is N/A, which again suggests a balanced market where sellers are generally able to sell at their asking price. These factors collectively indicate that while specific figures are lacking, the general conditions do not point to an overly expensive or challenging acquisition environment.
Third, there is a question of tenant demand. The ZIP code has a population of 894, with a 6.7% renter share. This low number of potential renters—approximately 60 individuals—may limit the pool of tenants, especially considering the relatively high FMR compared to the market rent. Landlords should be prepared for potentially longer vacancy periods or consider lowering rents to match market expectations.
In summary, while the theoretical rent based on FMR is higher than what the market supports, the lack of detailed data on median home values and days on market suggests a stable but moderately challenging investment environment. The limited tenant demand necessitates careful consideration of rental pricing strategies to ensure occupancy. For landlords and investors, the focus should be on aligning rent with market rates to attract and retain tenants effectively.
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.