Little Rock is a budget-friendly market in the South with a mid-sized city of 202,591. At a 4.62% estimated cap rate, this is a moderate market where rents of $1,210/mo lag behind home prices. With a median home price of $225,000 and population is roughly stable, Little Rock offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Little Rock's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $225,000, the $1,210/mo rent produces only $866/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($45K at 7%) would result in approximately $-331/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 15.5x gross rent multiplier and 6.4% vacancy rate position Little Rock as a balanced market. With annual appreciation at 2.4%, total returns (cash flow + equity growth) run approximately 7.0% before financing leverage.
Pre-filled with Little Rock medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Little Rock.
Little Rock, AR has a population of 202,591 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $225,000 paired with median rents of $1,210/mo produces an estimated cap rate of 4.62%.
Property taxes at 0.62% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.4% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.7x, homes cost about 4.7 times the local median income of $48,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Little Rock presents moderate opportunities. Cap rates near 4.62% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.