Searcy, AR Cap Rate: 4.15% — Rental Property Analysis
Searcy is a budget-friendly market in the South with a small but investable metro of 50,000. At a 4.15% estimated cap rate, this is a moderate market where rents of $1,010/mo lag behind home prices. With a median home price of $205,000 and steady population growth supports long-term rental demand, Searcy 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
◈
Moderate — source deals carefully
Based on $205,000 median price and $1,010/mo median rent
Est. Cap Rate
4.15%
1% Rule
0.49%
Fails
GRM
16.9x
Price / Income
4.4x
Market Data
Median Home Price$205,000
Median Monthly Rent$1,010
Property Tax Rate0.61%
Population50,000
Population Growth0.9% / yr
Median Household Income$46,400
Vacancy Rate6%
Annual Appreciation2.5%
2026 Market Update: Searcy
Searcy's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $205,000, the $1,010/mo rent produces only $709/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 ($41K at 7%) would result in approximately $-382/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 16.9x gross rent multiplier and 6% vacancy rate position Searcy as a balanced market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 6.6% before financing leverage.
Cap Rate Calculator — Searcy
Pre-filled with Searcy 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
3.49%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,145
net operating income
Gross Rent Multiplier
16.9x
High (>15)
1% Rule
0.49%
✗ Fails
Monthly Cash Flow
$595
before debt service
Annual Breakdown
Gross Rental Income$12,120
Less Vacancy−$727
Effective Income$11,393
Less Operating Expenses−$4,248
Net Operating Income$7,145
Sponsored
Analyze Deals Faster with DealCheck
Import any property, get instant investment analysis — cap rates, cash flow, rehab estimates, and offer calculations. Used by 350,000+ investors.
Factor in financing to see your actual return on invested capital in Searcy.
$
$51,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.70%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$57,400
$51,250 down + $6,150 closing
Monthly Mortgage
$1,002
on $154K loan
Monthly Cash Flow
$-416
after all expenses
Annual Cash Flow
$-4,996
before taxes
Cash Flow Breakdown
Monthly Rent$1,010
Less Expenses−$424
Less Mortgage−$1,002
Monthly Cash Flow$-416
Is Searcy a Good Place to Invest in Rental Property?
Searcy, 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 $205,000 paired with median rents of $1,010/mo produces an estimated cap rate of 4.15%.
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 4.4x, homes cost about 4.4 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: Searcy presents moderate opportunities. Cap rates near 4.15% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.