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 | $1,170 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $343,230 | 0.53% | F |
| 4BR | $2,200 | $621,072 | 0.35% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 72135 reveals a clear opportunity for cashflow, albeit marginal, when compared against the market rent. The HUD Fair Market Rent (FMR) for the area is set at $900 for fiscal year 2024. In contrast, the Census ACS data indicates that the average market rent for the same area is $1,671. This means that landlords who accept Section 8 vouchers will experience a shortfall of $771 per unit, making cashflow marginal unless they have premium units that can command higher rents.
To further analyze the investment potential, consider the median home value in ZIP 72135, which stands at $359,111. Using this figure, we can calculate the rent-to-price ratio. At $900 per month, the annual rent would be $10,800. Dividing this by the median home value gives us a rent-to-price ratio of approximately 0.003. This low ratio suggests that rental income alone may not justify the purchase price, indicating that appreciation or stability might be stronger investor angles.
Regarding the days on market (DOM), the data shows an N/A value, suggesting either insufficient data or a very active market where properties sell quickly. Similarly, the price-cut share of 0.1% indicates that sellers rarely need to lower their asking prices, pointing towards a strong seller's market. These factors imply that the housing market in ZIP 72135 is stable and potentially appreciating, which could be beneficial for long-term investors.
The strongest investor angle in ZIP 72135 appears to be stability, given the low price-cut share and the implication of a robust local real estate market. While cashflow from Section 8 vouchers is marginal, the potential for property value appreciation over time provides a solid foundation for investment success.
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.