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 | $1,050 |
| 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 Section 8 analysis for ZIP code 72061 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. As of the fiscal year 2024, the FMR stands at $1010. However, the market rent data is currently unavailable, which complicates a direct comparison.
Given that the FMR is set at $1010, landlords and small-portfolio investors should be aware that this represents the maximum amount that the government will pay towards a tenant's rent through the Housing Choice Voucher program. In ZIP 72061, where there is a reported 0.0% of renters and an average income of $81,141, the absence of market rent data suggests a predominantly owner-occupied area with limited rental activity.
In scenarios where the FMR exceeds the market rent, properties become attractive yield plays for investors. This is because landlords can receive a steady, government-backed income stream that closely matches what they would charge in the open market. The reliability of Section 8 payments can offset the risks associated with lower occupancy rates or less active rental markets.
Conversely, if the FMR were to fall below the market rent, landlords would face a decision regarding accepting Section 8 tenants. They might incur a loss equivalent to the difference between the FMR and the market rent, potentially making it unprofitable to lease units to voucher holders. For instance, if the market rent were hypothetically $1200, landlords would lose $190 per unit, representing a 18.8% shortfall compared to their potential revenue.
The median home value being listed as N/A further underscores the focus on homeownership in this area. This context is crucial for understanding the dynamics of the rental market and the potential impact of Section 8 vouchers on property yields.
To conclude, while the FMR of $1010 provides a benchmark for rental income in ZIP 72061, the lack of market rent data means that the true financial implications for landlords cannot be fully assessed. Investors must consider the low percentage of renters and the high median income when evaluating the viability of accepting Section 8 tenants.
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.