Factor in financing to see your actual return on invested capital in Paragould.
$
$46,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.24%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$51,800
$46,250 down + $5,550 closing
Monthly Mortgage
$905
on $139K loan
Monthly Cash Flow
$-313
after all expenses
Annual Cash Flow
$-3,751
before taxes
Cash Flow Breakdown
Monthly Rent$1,020
Less Expenses−$428
Less Mortgage−$905
Monthly Cash Flow$-313
Is Paragould a Good Place to Invest in Rental Property?
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.
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