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Investing in Little Rock, AR:
The Numbers

Little Rock is a quiet cash flow market. Capital city government and the UAMS medical complex anchor a stable rental base, while statewide landlord laws and modest entry prices make it an underrated pick for buy-and-hold operators looking outside the Sunbelt headline metros.

Cap Rate 7-10%Affordable EntryStable Anchor EmployersLandlord Friendly
$195K
Median Home Price
$1,150
Avg 3BR Rent/mo
7-10%
Cap Rate Range
0.62%
Property Tax Rate
Not available
Section 8 Voucher Count
~45 days
Avg Eviction Timeline

Data as of Q1 2026. Sources: HUD FMR (FY2026), Census ACS 5-year, Zillow ZHVI/ZORI. Where a value reads "Not available," the upstream source has not yet published a comparable figure for this metro at the time of this page rebuild.

Why Little Rock?

The case for Little Rock starts with the anchor employers. Arkansas state government, UAMS Medical Center, and the Air Force base at Jacksonville keep a steady rental base in place even when the broader economy moves. That stability matters more than headline rent growth for most cash flow investors.

Entry prices are roughly 20% below the Sunbelt average for comparable inventory. A working-condition 3BR in a B-tier neighborhood inside the I-630 loop runs $145K to $185K, with rents in the $1,050 to $1,250 range. The math is not as aggressive as Birmingham or Memphis, but the tenant pool is a notch more stable.

Arkansas is a strong landlord-rights state. The eviction process is one of the fastest in the country for non-payment cases — a clean uncontested filing typically resolves inside 45 days. There is no statewide rent control.

Section 8 Fair Market Rents

HUD sets Fair Market Rents annually for the Little Rock-North Little Rock-Conway metro. These are the payment standards that local housing authorities use to calculate Section 8 voucher amounts.

Section 8 Fair Market Rents — Pending

HUD has not yet posted FY2026 Fair Market Rents for the Little Rock-North Little Rock-Conway metro at the time of this page rebuild. The next quarterly refresh will populate this section automatically once HUD publishes.

Source: HUD User FMR dataset.

Little Rock's Section 8 program is administered through the Metropolitan Housing Alliance and the Pulaski County Housing Authority. Both run reasonably efficient HAP processes by southern-metro standards. Voucher absorption rates have historically been healthy.

Typical Deal Breakdown

Here is how a representative Little Rock deal looks on paper. Numbers are based on typical investor-reported data for the market, not best-case assumptions.

Example: 3BR SFR, Little Rock

Purchase Price$165,000
Rehab / Closing Costs$10,000
All-In Cost$175,000
Down Payment (25%)$41,250
Gross Rent (12 months)$13,800
Vacancy (8%)-$1,104
PM Fee (10%)-$1,242
Taxes + Insurance-$3,400
Maintenance-$900
Annual NOI~$7,154
Est. Cash-on-Cash Return~8.7%

Cash-on-cash return is calculated on cash invested (down payment plus rehab). Debt service on the loan is not deducted from NOI; your actual cash-on-cash after mortgage payments depends on your financing rate.

Landlord Context

Rent Control
None statewide
Eviction Timeline
~45 days (uncontested)
PM Fee Range
8-10% of rent
Section 8 Specialists
Available

Property management capacity in Little Rock is thinner than in Memphis or Birmingham. There are several solid generalist firms but only a handful that specialize in Section 8 administration. If you plan to lean on vouchers heavily, vet for HAP experience specifically.

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