Market Analysis
Little Rock Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$247,000
Average Monthly Rent
$1,274
Estimated Cap Rate
6.2%
Rent-to-Price Ratio
0.5%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 72204 | $128,500 | $1,095 | 0.85% |
| 72201 | $199,999 | $1,150 | 0.58% |
| 72211 | $294,000 | $1,500 | 0.51% |
| 72207 | $300,000 | $1,350 | 0.45% |
Context · FRED home price index
Market Trends
Little Rock metro area — % change since 2018
Home Prices
+61.7%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $917/mo |
| Townhouse | $995/mo |
| Multi-Family | $1,045/mo |
| Condo | $1,350/mo |
| Single Family | $1,700/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$247,000
Down Payment (20%)$49,400
Monthly P&I$1,288
Monthly Rent$1,274
Est. NOI$9,173/yr
Est. Cash Flow-$524/mo
Cash on Cash-11.6%
The Little Rock market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Little Rock
- 1Moderate cap rates suggest balanced cash flow and appreciation
- 21% Rule fails at median prices — need rent of $2,470/mo to pass
- 3Below-average rents keep entry costs low for new investors
- 4Affordable market — lower barrier to entry for first-time investors
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