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MarketsArkansasBatesvilleRental Property Investment Guide

Rental Property Investment Guide: Batesville, AR

Updated 2026 · Based on median market data for Batesville, AR

Cap Rate
5.43%
Median Price
$155K
Rent/Mo
$940
1% Rule
0.61%
Fails

Market Snapshot

Batesville sits in the South with a population of 50,000 growing at 0.9% annually. The median home costs $155,000 while rents average $940/mo, producing an estimated cap rate of 5.43%. This is a moderate market that rewards careful deal sourcing.

Who Should Invest Here

Batesville works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 5.43% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for Batesville

Target properties priced 15-25% below the $155,000 median — around $124,000 or less. At this price point with $940/mo rents, your cap rate improves to roughly 7.1%. Factor in 0.61% property taxes ($946/yr), budget 5% of gross rent for maintenance, and underwrite to a 6% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,003.

Risks and Considerations

Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Batesville property using our cap rate calculator (pre-filled with Batesville data). Compare Batesville against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How Batesville Compares

Batesville vs Arkansas state average and national average across key investment metrics. Batesville outperforms both benchmarks on cap rate.

Metric
Batesville
Arkansas Avg
National Avg
Cap Rate
5.43%
4.54%
3.81%
Median Price
$155K
$220K
$333K
Median Rent
$940
$1,140
$1,524
Property Tax
0.61%
0.61%
1.08%
Vacancy
6%
6%
5.6%
Pop. Growth
0.9%/yr
0.9%/yr
0.9%/yr

Nearby South Markets

City
Cap Rate
Price
Rent
Tax
Batesville, AR
5.4%
$155K
$940
0.61%
London, KY
6.7%
$155K
$1,130
0.81%
Muskogee, OK
7.2%
$155K
$1,220
0.88%
Ozark, AL
8.3%
$155K
$1,310
0.42%
Albany, GA
5.7%
$160K
$1,050
0.93%

Frequently Asked Questions

Is Batesville, AR a good place to invest in rental property?
Batesville has an estimated cap rate of 5.43%, which is above the national average of 3.81%. With median home prices at $155K and rents of $940/mo, Batesville offers strong cash flow fundamentals for rental investors. Population growth of 0.9% and 6% vacancy rate suggest moderate rental demand.
What is the average cap rate in Batesville?
The estimated cap rate for Batesville is 5.43%, based on median home prices of $155K, median rents of $940/mo, a 0.61% property tax rate, and 6% vacancy. This compares to a 4.54% average across Arkansas and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Batesville?
The median home price in Batesville is $155,000, which is 54% below the national average of $333,419. A 20% down payment would be approximately $31,000. Investment properties in Batesville range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Batesville property taxes for investors?
Batesville's effective property tax rate is 0.61%, which is above the Arkansas average of 0.61% and below the national average of 1.08%. On a $155K property, annual taxes are approximately $946 ($79/mo). Low property taxes are a significant cash flow advantage here.
Full Batesville Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Batesville & Related Markets

More Batesville Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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