Location: White County, 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)
A skeptical investor might question whether the Fair Market Rent (FMR) of $990 for ZIP 72111 can cover the mortgage on a $286,457 home. According to Zillow, which provides an estimate of mortgage payments based on current interest rates and typical down payments, the average monthly mortgage payment for a home in this area is approximately $1,100. This suggests that the FMR alone will not cover the mortgage, leaving a shortfall of $110 per month. However, it's important to note that this is an average and actual mortgage payments could vary based on the specifics of the loan, such as the interest rate and term.
The investor may also be concerned about the rental demand in ZIP 72111, which stands at 18.3%. While this figure indicates a moderate level of demand, it does not fully address the issue. The United States ZIP Codes website provides additional context, showing that rentals in 72111 are predominantly 3+ bedroom units, typically priced between $500 - $749 per month. This range is well below the FMR and suggests that there is a significant portion of the rental market willing to pay below the FMR. To fully assess the viability of rental demand, one would need to analyze the local job market, unemployment rates, and the overall economic health of the area.
Another objection could be whether HUD vouchers will keep pace with the $1,113 market rents. The HUD User website states that FMRs are used to determine payment standard amounts for the Housing Choice Voucher program. However, the specific voucher amounts for ZIP 72111 are not readily available from the sources provided. It's known that voucher amounts can lag behind market rents, but the exact gap for 72111 cannot be determined without further data. Investors should monitor local HUD announcements and updates to ensure they stay informed about any changes in voucher policies or amounts.
In summary, while the FMR of $990 will not fully cover the average mortgage payment of $1,100, there is a segment of the rental market willing to pay below this amount. The adequacy of rental demand and the alignment of HUD vouchers with market rents require further investigation beyond the provided data points. A comprehensive analysis should include local economic conditions and ongoing monitoring of federal housing assistance programs.
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.