Updated 2026 · Based on median market data for Hot Springs, AR
The median monthly rent in Hot Springs, AR is $1,260, translating to $15,120 in annual gross rental income per unit. The rent-to-price ratio is 0.53% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Hot Springs spend approximately 33% of the local median household income ($46,400) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.
The vacancy rate in Hot Springs is 6%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.9% annually provides stable demand.
Hot Springs's GRM (price divided by annual rent) is 15.9x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,260/mo, a single-family rental in Hot Springs generates approximately $15,120 in gross annual income. After accounting for 6% vacancy ($907 lost), property taxes of $1,464, insurance (~$960), and maintenance (~$960), the estimated NOI is $10,829 per year, or $902/mo.
Hot Springs vs Arkansas state average and national average across key investment metrics. Hot Springs beats the national average but trails the Arkansas average on cap rate.