Section 8 Fair Market Rent (FMR) for ZIP 72260 - 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 72260 (Unknown, AR) for Section 8 investments, follow this decision tree:
- Does the Fair Market Rent (FMR) of $1110 cover debt service on a property?
- Yes: The FMR of $1110 is sufficient to cover debt service, making the area financially viable for Section 8 properties.
- No: If the FMR does not cover your debt service requirements, investing in this ZIP code would be unwise due to financial losses.
- Is the market rent above, at, or below the FMR?
- Above FMR: If the market rent exceeds $1110, landlords can potentially earn more from private tenants than from Section 8 vouchers. This makes the ZIP code less attractive for pure Section 8 investments.
- At FMR: Market rents equaling the FMR of $1110 indicate that there's no premium for private rentals, making Section 8 investments equally competitive.
- Below FMR: When market rents fall below $1110, Section 8 vouchers become more attractive to tenants, increasing the demand for Section 8 properties.
- Are the percentage of renters and the days on market (DOM) enough to ensure demand?
- Sufficient renters and low DOM: A high percentage of renters combined with a short time on the market indicates strong demand for rental properties, including those eligible for Section 8.
- Limited renters or high DOM: If there are few renters or the properties take too long to rent out, demand is weak. This would make Section 8 investments less favorable unless you're willing to wait for tenants.
The final decision will depend on how these factors align with your investment criteria. For instance, if the FMR covers debt service and the market rent is below the FMR, but there's insufficient demand, then the answer is no. Conversely, if all conditions are met favorably, then the answer is yes.
Note: Specific percentages and DOM values were not provided, so they must be assessed based on actual local market data.
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.