Location: Van Buren County, 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 | $1,390 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $263,474 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 72131 might have several concerns regarding the feasibility of renting properties under the Section 8 program. Let's address these concerns head-on using the available data.
Objection 1: Will FMR $1010 (zip FY 2024) cover the mortgage on a $248,353 home?
The Fair Market Rent (FMR) for ZIP 72131 in fiscal year 2024 is set at $1010 per month. To determine if this amount can cover the mortgage on a home priced at $248,353, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment would be approximately $1165. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of $155 per month. However, it's important to note that property taxes, insurance, and other costs are also covered under the Section 8 program, which can help offset some of this shortfall.
Objection 2: Is there enough renter demand at 21.4%?
The percentage of renters in ZIP 72131 stands at 21.4%. This figure suggests that while there is a significant number of homeowners, there is still a notable portion of the population who prefer or require rental housing. The demand for rental properties is influenced by various factors such as job opportunities, housing affordability, and local economic conditions. While 21.4% may seem low, it's crucial to consider the specific dynamics of the area. For instance, if there are substantial employment opportunities that attract new residents, the demand for rentals could be higher than what the percentage alone indicates.
Objection 3: Will vouchers keep pace with $738 market rents?
The average market rent in ZIP 72131 is reported at $738 per month. Section 8 vouchers are designed to cover a significant portion of the rent but not necessarily the entire amount. The voucher amount is based on the FMR and the size of the unit. Given that the FMR is $1010, it is likely that vouchers will cover a substantial part of the $738 market rent. However, the exact amount covered by vouchers can vary, and landlords should check the specific voucher amounts for different unit sizes in the area. It's also worth noting that the housing authority periodically adjusts voucher amounts to reflect changes in the local rental market, ensuring they remain competitive.
In conclusion, while the data provides insights into the financial aspects of renting in ZIP 72131, it's essential to consider broader economic trends and local conditions that can impact demand and affordability. The decision to participate in the Section 8 program should be made after thorough consideration of all relevant factors.
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.