In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Arkansas. Three towns made our list: Rogers, Little Rock, and Fayetteville. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Arkansas is a southern state that should not be overlooked when it comes to property investing. This state has six national parks, over 600,000 acres of lakes, and 9,700 miles of streams and rivers. Not to mention Wal-Mart’s headquarters are in Arkansas, the state has the only diamond mine in the U.S., and it is home to a large number of natural resources. Whether it’s taking a trip to the Ozarks, attending a game at the University of Arkansas, or sitting in one of the many hot springs, Arkansas is a great place to work, live, and play.
Even if you aren’t a fan of Arkansas’s famous possum pie, The Natural State is rich with property investment opportunities. Let’s find out the top places to buy a rental investment property in Arkansas.
#3: Rogers
Rogers is a prime spot for lovers of the outdoors – there are bike parks, the Buffalo National River, and let’s not forget the acclaimed Eureka Springs close by. Its historic downtown is a great place to work or just hang out with old-fashioned storefronts, cafes, antiques, and local restaurants. Rogers has a strong community sense which is why singles, families, and retired couples are choosing to live there evident by the 3.7% population growth. Property investors can expect a low median sale price of $155k and an increase of 7.7% in home values. Furthermore, for this small town, landlords will get an average of 25 leads per property and 18 days on the market. Not bad Rogers.
- Population growth: 3.7%
- Employment growth: 1.9%
- Increase in home values: 7.7%
Median Sale Price: $155k
Average Rent: $900
Average Number of Leads per Property: 25
Number of days on the rental market: 18
#2: Fayetteville
Fayetteville is known as the entertainment capital of Northwest Arkansas – it is a perfect location for couples and families looking for a friendly culture. Most importantly, it is the home of the University of Arkansas. Razorback students play a huge part in filling rental properties quickly in only 12 days. Whether it’s strolling down Dickson Street, seeing a show at the Walton Arts Center, or hiking on the excellent trails nearby, Fayetteville is the place to be. With a steady population growth and employment, landlords can expect around 30 leads per property.
- Population growth: 3.7%
- Employment growth: 1.9%
- Increase in home values: 7.6%
Median Sale Price: $285k
Average Rent: $837
Average Number of Leads per Property: 30
Number of days on the rental market: 12
#1: Little Rock
Little Rock ironically is the largest city in Arkansas with a population of 200,000 people – it’s also one of the most affordable towns with an average rent of only $802. Little Rock is on the move with a bustling River Market District, Clinton Presidential Center & Park, and many art galleries. Its importance in history is evident including its connection with the Trail of Tears and home of Little Rock Central High School, where nine African-American students integrated the all-white school. While it might be Little Rock, your success with rental properties will be huge – landlords can expect only nine days on the market, the lowest of our Arkansas towns. They will also have a solid average of 30 leads per property. You can see why Little Rock takes our #1 slot.
- Population growth: -0.3%
- Employment growth: 1.7%
- Increase in home values: 10.3%
Median Sale Price: $179k
Average Rent: $802
Average Number of Leads per Property: 30
Number of days on the rental market: 9
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
About the TurboTenant Report
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
Methodology:
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
Sources:
- TurboTenant Rental Data
- Fastest Growing States Population
- The Best and Worst Cities to Own Investment Property
- Real Estate data provided by Redfin, a national real estate brokerage.
