Cap Rate in Little Rock, AR

2026 Market Overview for Real Estate Investors

Avg Cap Rate

8.3%

#8 of 50 markets

Median Home Price

$150,000

Purchase price

Median Monthly Rent

$1,150

$13,800/yr gross

Rent-to-Price Ratio

0.77%

Moderate

Cap Rate Rating

Very Good

Above average. Make sure the higher return is not masking higher risk or deferred maintenance.

Market Snapshot

Population	202,591
5-Year Population Growth	+0.5%
Median Household Income	$46,000
Vacancy Rate	8.5%
Property Tax Rate	0.63%($945/yr)

Investor Takeaway

Little Rock is an overlooked market with low property taxes, affordable entry points, and steady government-sector employment. A solid choice for out-of-state investors seeking cash flow.

Quick Math

Estimated annual numbers for a median-priced property in Little Rock, AR before financing:

Annual Gross Rent$13,800

Less Vacancy (8.5%)($1,173)

Less Property Tax (0.63%)($945)

Less Est. Insurance + Maintenance($3,000)

Estimated NOI$8,682

Implied Cap Rate5.8%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.