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 | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,390 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,040 | $119,212 | 0.87% | C |
| 3BR | $1,390 | $159,682 | 0.87% | C |
| 4BR | $1,640 | $221,091 | 0.74% | D |
U.S. Census Bureau data (2024)
960 is the Fair Market Rent (FMR) for ZIP code 72206 in Little Rock, AR, for fiscal year 2024, indicating the maximum rental amount for units to be eligible under the Section 8 program. 1,013 is the market rent (ZORI), showing a slight premium over the FMR for the area. Despite the higher market rent, 133,265 is the median home value, which suggests that while housing is relatively affordable, there might be limitations on the types of properties that can command higher rents. 29.3% represents the renter share of the population, highlighting a significant portion of the community that relies on rental housing, including potential Section 8 tenants. The median income of 52,132 provides insight into the financial capacity of local residents, though it's important to note that many Section 8 participants have incomes below this median. Price-cut share stands at 0.2%, suggesting that most listings in the area are sold at or near their original asking price, which could indicate strong demand for properties in ZIP 72206.
The data paints a picture where landlords and small-portfolio investors can expect a modest profit margin when participating in the Section 8 program, given the difference between the FMR and ZORI. However, the affordability of homes and the significant renter share suggest that there is a viable market for Section 8 tenants. With the median income providing a benchmark for the economic health of the area, it's clear that the program serves a critical need among lower-income residents. The low price-cut share further supports the idea that the market is robust and that properties priced appropriately will attract buyers.
In conclusion, for ZIP 72206, the Section 8 program presents an opportunity for steady, if not high, returns on investment, with a strong tenant pool and a competitive but manageable market environment. The verdict on Section 8 in this area is positive, with a solid foundation for rental investments.
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.