Little Rock is Arkansas’ capital and largest city, situated on the Arkansas river. Its existence is due to its valuable location on the banks of this tributary of the Mississippi, and its river port is still active and critical infrastructure. Two interstate highways intersect in Little Rock. The closest large city is Memphis, Tennessee, about 2 hours away. Little Rock has steadily grown in population over the past 10 years, surpassing 200,000 residents in 2021.  Major employers include University of Arkansas, Baptist Health, Little Rock Air Force Base and the Arkansas Children’s Hospital.

Little Rock, Arkansas, presents several advantages for investors looking to acquire single-family rental homes. Here’s why it can be a good market:

• Affordable Property Prices

Little Rock offers relatively low home prices compared to national averages, making it an accessible market for investors looking to maximize cash flow with a lower initial investment.

• Strong Rental Demand

A significant portion of the population rents, driven by factors such as affordability constraints, job mobility, and the presence of colleges and universities. This creates consistent rental demand for single-family homes.

• Attractive Rental Yields & Cash Flow Potential

Due to the combination of affordable housing prices and relatively strong rental rates, investors can achieve favorable cap rates and cash-on-cash returns, especially in desirable neighborhoods.

• Diverse & Stable Job Market

Little Rock has a well-diversified economy with strong employment sectors such as:
• Government (State capital and major government offices)
• Healthcare (University of Arkansas for Medical Sciences, multiple hospitals)
• Aerospace & Manufacturing (Dassault Falcon Jet, aerospace industry presence)
• Finance & Retail (Home to major companies like Bank of the Ozarks)

This job diversity provides economic stability, helping sustain long-term rental demand.

• Favorable Landlord Laws

Arkansas is a landlord-friendly state, with laws that favor property owners in cases of eviction and lease enforcement, making it easier to manage rental properties.

• Low Property Taxes

Little Rock benefits from relatively low property tax rates, which helps investors maximize cash flow and reduce ongoing expenses.

• Steady Population Growth & Development

While not experiencing explosive population growth, Little Rock has a stable and slowly growing population. The city has seen infrastructure improvements and economic development efforts that may contribute to future appreciation in property values.

• Revitalization & Redevelopment Efforts

Certain neighborhoods in Little Rock are undergoing revitalization, creating opportunities for appreciation. Investors who target these areas can benefit from rising property values over time.