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MarketsArkansasBatesville

Cap Rate Analysis: Batesville, AR

Investment metrics, interactive calculators, and data-driven analysis for Batesville rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $155,000 median price and $940/mo median rent
Est. Cap Rate
5.43%
1% Rule
0.61%
Fails
GRM
13.7x
Price / Income
3.3x

Market Data

Median Home Price$155,000
Median Monthly Rent$940
Property Tax Rate0.61%
Population50,000
Population Growth0.9% / yr
Median Household Income$46,400
Vacancy Rate6%
Annual Appreciation2.5%

Cap Rate Calculator — Batesville

Pre-filled with Batesville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.61% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.52%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,003
net operating income
Gross Rent Multiplier
13.7x
Good (<15)
1% Rule
0.61%
✗ Fails
Monthly Cash Flow
$584
before debt service
Annual Breakdown
Gross Rental Income$11,280
Less Vacancy−$677
Effective Income$10,603
Less Operating Expenses−$3,600
Net Operating Income$7,003
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Cash-on-Cash Return — Batesville

Factor in financing to see your actual return on invested capital in Batesville.

$
$38,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.89%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$43,400
$38,750 down + $4,650 closing
Monthly Mortgage
$758
on $116K loan
Monthly Cash Flow
$-213
after all expenses
Annual Cash Flow
$-2,554
before taxes
Cash Flow Breakdown
Monthly Rent$940
Less Expenses−$395
Less Mortgage−$758
Monthly Cash Flow$-213

Is Batesville a Good Place to Invest in Rental Property?

Batesville, AR has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $940/mo produces an estimated cap rate of 5.43%.

Property taxes at 0.61% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.3x, homes cost about 3.3 times the local median income of $46,400. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Batesville presents moderate opportunities. Cap rates near 5.43% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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