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 | $1,230 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 72201 within the Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area reveals several key points for real estate investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 72201 in fiscal year 2024 is set at $1450. This figure is notably higher than the market rent, which stands at $1,025 according to ZORI. Landlords can expect to charge below the FMR but still receive a competitive rental income, aligning with the current market conditions.
Regarding the affordability of acquisition, the median home value in ZIP 72201 is $248,540. With no data available on days on market (DOM) and a negligible 0.1% share of homes that have had their prices cut, it suggests that the housing market is stable. However, the median home value is relatively high, which may pose challenges for small-portfolio investors looking to acquire properties within budget constraints.
Finally, the demand for tenants appears strong. The ZIP code has a population of 795, with 65.2% of residents being renters. This indicates a significant portion of the local population actively seeking rental housing, making it a favorable environment for landlords to find and retain tenants.
In summary, while the rent math in ZIP 72201 is viable given the disparity between FMR and market rent, the acquisition cost is relatively high. Despite this, the strong tenant demand due to the high percentage of renters in the area makes it a potentially profitable investment. Landlords should consider these factors carefully when deciding to enter this market, ensuring they can manage the higher acquisition costs while benefiting from the robust rental demand.
Data Sources: FMR data from HUD (2027). 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.