Paragould is a budget-friendly market in the South with a small but investable metro of 50,000. At a 4.81% estimated cap rate, this is a moderate market where rents of $1,020/mo lag behind home prices. With a median home price of $185,000 and steady population growth supports long-term rental demand, Paragould 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
Paragould's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $185,000, the $1,020/mo rent produces only $741/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 ($37K at 7%) would result in approximately $-243/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 15.1x gross rent multiplier and 6% vacancy rate position Paragould as a balanced market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 7.3% before financing leverage.
Pre-filled with Paragould medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Paragould.
Paragould, 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 $185,000 paired with median rents of $1,020/mo produces an estimated cap rate of 4.81%.
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 4.0x, homes cost about 4.0 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: Paragould presents moderate opportunities. Cap rates near 4.81% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.