10 Arkansas cities ranked by estimated cap rate. The average cap rate across Arkansas markets is 4.5%, with median home prices averaging $220K and rents averaging $1,140/mo. Jonesboro leads with a 6.1% cap rate at a $200K median price. Arkansas's low average property tax rate of 0.61% gives investors a significant cash flow advantage.
Arkansas offers 10 investable rental markets tracked by CapRateCity. The state average cap rate of 4.5% is above the 3.81% national average, making Arkansas an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Arkansas home prices average $220K, which is 34% below the national average of $333K. Rents average $1,140/mo. The most affordable entry point is Batesville at $155K, while Jonesboro offers the highest cap rate at 6.1%.
Taxes and costs: Property taxes average 0.61% across Arkansas, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $1,029 per year to NOI on an average-priced property. Fort Smith has the lowest rate at 0.6%.Vacancy averages 6.0%, in line with national norms.
Growth outlook: Population growth across Arkansas averages 0.91% per year, led by Fayetteville at 2.2%. Home values are appreciating at 2.5% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Arkansas offers moderate opportunities for rental investors. The best deals are in cities at the top of the ranking — use the calculators on each city page to model specific properties.