Section 8 Fair Market Rent (FMR) for ZIP 72231 - 2027
Location: Little Rock-North Little Rock-Conway, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| 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 |
To determine if you should buy in ZIP code 72231 for Section 8 investment, follow this decision tree:
- 1) Does the Fair Market Rent (FMR) of $1110 cover the debt service on a property?
- Yes: Proceed to the next question.
- No: Do not invest in this area. The FMR is insufficient to cover your debt service, making it unprofitable.
- 2) Is the market rent above, at, or below the FMR?
- Above: This indicates that properties can be rented out at higher rates than what is covered by Section 8, which can be advantageous. However, you must still ensure that the FMR covers your debt service.
- At: This means the market rent matches the FMR. It's a neutral situation; profitability will depend on the specific terms of the Section 8 contract and your ability to manage costs effectively.
- Below: If market rents are below the FMR, it might be beneficial for Section 8 landlords who can charge the higher FMR rate. However, this also suggests lower demand for non-subsidized rentals.
- 3) Are the percentage of renters and days on the market sufficient to indicate enough demand?
- It Depends: Without specific percentages and days on the market, it's challenging to make a definitive judgment. However, if the percentage of renters is high and the days on the market are low, this typically indicates strong demand. Conversely, if these metrics suggest weak demand, consider the risk of vacancy.
Note: The data provided does not include specific figures for market rent, percentage of renters, or days on the market. These missing details are crucial for making an informed decision about investing in ZIP code 72231 for Section 8 housing.
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.