Updated 2026 · Based on median market data for Mountain Home, AR
The median monthly rent in Mountain Home, AR is $1,120, translating to $13,440 in annual gross rental income per unit. The rent-to-price ratio is 0.49% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Mountain Home spend approximately 29% of the local median household income ($46,400) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units.
The vacancy rate in Mountain Home 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.
Mountain Home's GRM (price divided by annual rent) is 17.1x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,120/mo, a single-family rental in Mountain Home generates approximately $13,440 in gross annual income. After accounting for 6% vacancy ($806 lost), property taxes of $1,403, insurance (~$920), and maintenance (~$920), the estimated NOI is $9,391 per year, or $783/mo.
Mountain Home vs Arkansas state average and national average across key investment metrics. Mountain Home beats the national average but trails the Arkansas average on cap rate.