Location: Jefferson 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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,460 |
| 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 | $1,460 | $209,899 | 0.7% | D |
U.S. Census Bureau data (2024)
The market in ZIP code 72132 presents a dynamic equilibrium between supply and demand, with key indicators pointing towards a balanced but slightly pressured rental environment. The Fair Market Rent (FMR) for the area stands at $1190 for the fiscal year 2024, reflecting the government's assessment of what is considered a reasonable rent for the majority of units in the area. This figure is notably higher than the reported market rent of $903, based on Census ACS data, suggesting that landlords might have an opportunity to adjust their rents closer to the FMR without losing tenants.
The median home value in the region is $188,629. While this provides insight into the overall housing market, it does not directly indicate whether supply outpaces demand or vice versa. However, the significant gap between the FMR and the actual market rent could imply that there is a slight shortage of affordable rental units, putting upward pressure on rents. Landlords should be cautious not to price themselves out of the market, as doing so could lead to longer vacancy periods and reduced occupancy rates.
The 20.9% renter share highlights the ongoing long-term housing pressure within the ZIP code. A higher percentage of renters often correlates with a greater need for affordable housing, which can create a persistent demand for rental properties. This suggests that the rental market is likely to remain active, providing steady income opportunities for landlords and small-portfolio investors. However, it also means that competition among renters for available units may drive up demand and potentially rents if landlords are willing to adjust their pricing strategies.
To navigate this market effectively, landlords must keep a close eye on both the FMR and market rent trends, while also being mindful of the local economy and job market conditions. Understanding these dynamics will help in making informed decisions regarding property management and investment strategies.
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.