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 | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $179,976 | 0.61% | D |
| 3BR | $1,480 | $259,431 | 0.57% | F |
| 4BR | $1,780 | $327,816 | 0.54% | F |
| 5BR | $2,065 | $536,542 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 72227 is situated in a suburban part of Little Rock, AR, characterized by a modest population size of 11,284 residents. The area reflects a blend of homeowners and renters, with 38.2% of the population renting their homes. This indicates a steady demand for rental properties, supported by a relatively high median household income of $73,879. The median home value in the region stands at $273,197, suggesting that the neighborhood is moderately priced and appeals to a middle-class demographic.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 72227 in fiscal year 2024 is set at $1,150. In contrast, the market rent, as measured by Zillow's Observed Rent Index (ZORI), is $1,051. This discrepancy between the FMR and market rent highlights a potential opportunity for landlords who can leverage the higher FMR to attract tenants through the Section 8 housing choice voucher program. However, it also suggests that the market rent is below the FMR, which could mean that landlords might need to adjust their expectations if they rely solely on market rents.
Given these factors, ZIP 72227 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the neighborhood's demographics and the availability of Section 8 vouchers provide a stable tenant pool with guaranteed rental income. Meanwhile, value-add buyers could find opportunities to improve properties and potentially command rents closer to the FMR, especially given the neighborhood's median income levels and the overall demand for rental units. Both strategies have merit depending on the landlord's investment goals and risk tolerance.
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.