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 | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $93,125 | 1.18% | B |
| 3BR | $1,480 | $144,666 | 1.02% | B |
| 4BR | $1,780 | $188,903 | 0.94% | C |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord in ZIP 72118, North Little Rock, AR, must be carefully considered. Tenant turnover is a significant concern, with the market rent at $1,039 compared to the Fair Market Rent (FMR) for FY 2024 at $1,070. This difference can lead to higher tenant turnover rates, as vouchers may only cover the lower FMR amount, leaving tenants to pay out-of-pocket for the gap. High turnover can result in increased vacancy periods and associated costs.
Vacancy exposure is another critical issue, particularly due to the lack of available data on days on market (DOM). Without this information, it's challenging to predict how long a property might remain vacant between tenancies, which can impact cash flow negatively. Additionally, the deferred maintenance risk is elevated considering the typical home value of $132,918 and the median household income of $49,559. The disparity between these figures suggests that many residents may struggle to afford substantial home improvements, potentially leading to higher maintenance demands on landlords.
However, these risks are tempered by the high renter share of 48.8%, indicating a robust demand for rental properties. A large number of renters often translates into a greater availability of Section 8 vouchers, reducing the likelihood of extended vacancies and increasing the pool of qualified tenants. Furthermore, the presence of a significant voucher program can help stabilize rental income, providing a reliable source of payment even when market rents fluctuate.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.