Recent theoretical results on low-rank matrix reconstruction have inspired significant interest in low-rank modeling of MRI images. Existing approaches have focused on higher-dimensional scenarios with data available from multiple channels, timepoints, or image contrasts. The present work demonstrates that single-channel, single-contrast, single-timepoint k-space data can also be mapped to low-rank matrices when the image has limited spatial support or slowly varying phase. Based on this, we develop a novel and flexible framework for constrained image reconstruction that uses low-rank matrix modeling of local k-space neighborhoods (LORAKS). A new regularization penalty and corresponding algorithm for promoting low-rank are also introduced. The potential of LORAKS is demonstrated with simulated and experimental data for a range of denoising and sparse-sampling applications. LORAKS is also compared against state-of-the-art methods like homodyne reconstruction, l1-norm minimization, and total variation minimization, and is demonstrated to have distinct features and advantages. In addition, while calibration-based support and phase constraints are commonly used in existing methods, the LORAKS framework enables calibrationless use of these constraints.