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 ZIP code 72115, located within the Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area, serves as a critical component in a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor.
The Fair Market Rent (FMR) for ZIP 72115 in fiscal year 2024 is set at $1110. This figure represents the maximum amount that a landlord can receive through the Section 8 program for a given unit. However, the market data for ZIP 72115 indicates that recent sales have seen properties selling at a discount compared to their list prices, with a typical discount ranging from 5% to 8%. This suggests that the market rent may be lower than the FMR, creating a positive spread that benefits landlords participating in the Section 8 program.
The extended Days on Market (DOM) periods observed in recent sales, such as the 118 days for 1505 Nanterre St, indicate a slower-moving market. This trend supports the idea that ZIP 72115 can serve as a stable cash-flow anchor within a Section 8 portfolio. The consistent demand for rental units, coupled with the higher FMR compared to potential market rents, ensures steady income for landlords who are willing to accept Section 8 tenants.
Investing in ZIP 72115 is advisable for landlords and small-portfolio investors seeking reliable cash flow. The positive spread between the FMR and likely market rents provides a buffer against potential maintenance costs and vacancy rates. Additionally, the slower market turnover implies a stable tenant pool, reducing the frequency of turnovers and associated costs.
To effectively incorporate ZIP 72115 into a Section 8 portfolio strategy, focus on properties that can command the FMR without significant renovations. Given the extended DOM periods, consider properties in need of minor improvements to maximize rental yield while minimizing investment risk.
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.