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 Section 8 housing market in ZIP code 72203, located in the Little Rock-North Little Rock-Conway area of Arkansas, presents a unique set of challenges and opportunities for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this region is set at $1110 per month for fiscal year 2024. However, the current market rent data is unavailable, which makes it difficult to provide a precise comparison.
Based on the HUD FMR alone, we can infer that voucher tenants will likely cashflow at this rate, assuming that the market rent is above the FMR. This is because the FMR is designed to be competitive with the local rental market, ensuring that voucher holders can find suitable housing. In the absence of specific market rent data, it's reasonable to conclude that landlords might experience stable cashflows with units priced at or slightly above the FMR, especially if they focus on maintaining high-quality properties that appeal to voucher holders.
The median home value for ZIP 72203 is also currently unavailable, which means deriving an exact rent-to-price ratio is not possible. Nonetheless, understanding the rent-to-price ratio can help investors gauge the relative affordability of renting versus buying in the area. If the median home value were available, it would allow us to calculate the ratio and determine whether the rental market is more attractive than homeownership for potential residents.
The days on market (DOM) and price-cut share percentages are also not provided, which are typically important metrics for assessing the local real estate market's health and the balance between supply and demand. These figures would give insight into how quickly properties are being rented and whether there is significant competition among landlords that could affect pricing strategies.
In conclusion, while specific market rent and median home value data are lacking, the HUD FMR of $1110 suggests that voucher tenants will cashflow at this rate. For investors, the strongest angle in this market appears to be stability, given the predictability of HUD payments and the likelihood of consistent cash flows from well-maintained properties. Stability is crucial for those looking to build a reliable income stream through their investments.
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.