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 HUD Fair Market Rent (FMR) for ZIP code 72164 in the Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area for fiscal year 2024 is set at $1110. This figure represents the maximum amount that landlords can charge for rental units under the Section 8 program. However, without specific market rent data for comparison, it's challenging to definitively state how this FMR aligns with local rental rates.
To assess the cashflow potential for voucher tenants, we need to consider the relationship between the FMR and the actual market rents. If the market rent is higher than the FMR, then landlords might find that they can only achieve positive cashflow with premium units, which are typically larger or better equipped than standard rental properties. Conversely, if the market rent is close to or below the FMR, landlords can expect to cashflow at the FMR rate or marginally above it, depending on their unit's condition and location.
The median home value in ZIP 72164 is not available, which means we cannot directly calculate the rent-to-price ratio. This ratio is crucial for understanding the dynamics between renting and buying in the area. Without this information, it's difficult to provide a precise analysis of how competitive renting is compared to owning a home. Nonetheless, the absence of this data does not necessarily indicate a lack of investment opportunity; it simply means that the decision to invest should be based on other factors such as the stability of the housing market and the demand for rental units.
The days on market (DOM) and the percentage of price cuts are also not provided. These metrics are important for gauging the speed at which properties sell and the level of competition among sellers. In the context of Section 8 investing, these factors can influence the desirability of rental properties over homes for sale, particularly when considering the long-term stability and predictability of rental income.
The strongest angle for investors in ZIP 72164 appears to be stability. Given the reliance on government-set rents through the Section 8 program, investors can expect consistent income streams that are less susceptible to market fluctuations. This makes Section 8 investments a reliable choice for those looking to minimize risk and ensure steady returns.
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.