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Cap Rate Analysis: Russellville, AR

Investment metrics, interactive calculators, and data-driven analysis for Russellville rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $195,000 median price and $900/mo median rent
Est. Cap Rate
3.80%
1% Rule
0.46%
Fails
GRM
18.1x
Price / Income
4.2x

Market Data

Median Home Price$195,000
Median Monthly Rent$900
Property Tax Rate0.61%
Population50,000
Population Growth0.9% / yr
Median Household Income$46,400
Vacancy Rate6%
Annual Appreciation2.5%

Cap Rate Calculator — Russellville

Pre-filled with Russellville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.61% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.20%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,240
net operating income
Gross Rent Multiplier
18.1x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$520
before debt service
Annual Breakdown
Gross Rental Income$10,800
Less Vacancy−$648
Effective Income$10,152
Less Operating Expenses−$3,912
Net Operating Income$6,240
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Cash-on-Cash Return — Russellville

Factor in financing to see your actual return on invested capital in Russellville.

$
$48,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.48%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$54,600
$48,750 down + $5,850 closing
Monthly Mortgage
$953
on $146K loan
Monthly Cash Flow
$-431
after all expenses
Annual Cash Flow
$-5,177
before taxes
Cash Flow Breakdown
Monthly Rent$900
Less Expenses−$378
Less Mortgage−$953
Monthly Cash Flow$-431

Is Russellville a Good Place to Invest in Rental Property?

Russellville, 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 $195,000 paired with median rents of $900/mo produces an estimated cap rate of 3.80%.

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 4.2x, homes cost about 4.2 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: At current median prices, Russellville is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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