Location: Little Rock-North Little Rock-Conway, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $78,189 | 1.33% | A |
| 3BR | $1,400 | $110,414 | 1.27% | A |
U.S. Census Bureau data (2024)
The median income in ZIP code 72114, located in North Little Rock, Arkansas, stands at $30,175. Given the market rate for rent at $1,115 (ZORI), it becomes evident that the cost of housing represents a significant portion of the average household's income. This high rent-to-income ratio places considerable financial strain on residents, making it challenging for them to find affordable housing options.
In comparison, the Housing Choice Voucher Program offers a more manageable solution, with a Fair Market Rent (FMR) standard set at $1,020 for the fiscal year 2024. This means that for those eligible for vouchers, the government subsidy will cover up to $1,020 towards their monthly rent. However, this still leaves a substantial gap between the market rate and the voucher payment, which could be a point of negotiation between landlords and tenants using vouchers.
ZIP 72114 has a rental population of 75.2%, indicating a strong demand for rental properties among the 10,093 residents. The affordability gap between the median income and the market rate rent suggests that there is likely to be intense competition among landlords to attract tenants who can pay the full market rate. For those unable to meet the market rate, the voucher program provides an alternative, though it may require landlords to accept lower rents or negotiate with tenants.
The takeaway for landlords considering their strategy is clear: while accepting voucher tenants ensures a steady stream of rental income, it might not match the higher rates of cash-paying tenants. Landlords should weigh the benefits of guaranteed payments against the potential for higher profits from non-voucher tenants. In a competitive market, diversifying their tenant mix may be the most effective approach to maximize occupancy and income stability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.