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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
The economics of Section 8 housing in ZIP code 72078, which includes parts of Little Rock, North Little Rock, and Conway County in Arkansas, can be quite straightforward once you understand the key components involved. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1110 for the fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent of a unit in this specific ZIP code.
The SAFMR is designed to cover the majority of the rent, but it does not cover the entire cost. Tenants are required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. This contribution is called the tenant portion. In addition to the SAFMR and the tenant portion, there are also utility allowances. These allowances are fixed amounts intended to help cover the cost of utilities and do not vary based on actual usage.
To illustrate, let's assume a tenant has an adjusted monthly income of $1000. Their contribution would be 30% of this, equating to $300. If the total rent for a two-bedroom unit is $1110, the remaining $810 would be covered by the Section 8 voucher. However, if the local market rent for similar units is higher, say $1200, then the landlord would receive $1110 from the voucher plus the $300 from the tenant, totaling $1410. But since the SAFMR is capped at $1110, the landlord would only receive $1110 plus the tenant portion, leaving a shortfall of $90 ($1200 - $1110).
If the local market rent is lower than the SAFMR, for example $1000, then the landlord would receive the full market rent plus the tenant's contribution, resulting in a surplus. In this case, the landlord would receive $1000 in market rent plus $300 from the tenant, totaling $1300. Since the SAFMR is $1110, the landlord would have a surplus of $190 ($1300 - $1110).
Note that the SAFMR applies specifically to this ZIP code, meaning it is tailored to the economic conditions of this area rather than being a uniform rate across the broader metropolitan or county level. As such, it provides a more accurate reflection of the local rental market.
In summary, for a two-bedroom unit in ZIP 72078, the SAFMR is $1110. Given the local market rent is not available, we can only speculate on the potential reimbursement gap or surplus. If the market rent were higher, there would be a gap; if lower, a surplus. Landlords should ensure they know the local market rates to assess whether participating in Section 8 will meet their financial needs.
Data Sources: FMR data from HUD (2027).
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.