DSCR Loans in Arkansas
Last updated: May 2026
Arkansas is a low-cost-of-entry state where DSCR investors can acquire rental properties at price points that are hard to find elsewhere in the Southeast. Northwest Arkansas — anchored by Walmart, Tyson Foods, and J.B. Hunt — has been one of the region's most consistent growth engines, drawing population and economic activity at a pace that outstrips the national average. For investors focused on cash flow over appreciation, Arkansas offers some compelling numbers.
Property Tax
~0.63%
State Income Tax
4.4% flat
Landlord Friendly
Very
Eviction Timeline
~20-30 days
Property Taxes in Arkansas
Arkansas's effective property tax rate averages around 0.63%, well below the national average. Rates differ notably by county: Benton County (NWA) runs about 0.60%, Pulaski County (Little Rock) averages approximately 0.75%, and Washington County (Fayetteville) sits near 0.58%. Assessment ratios for real property are 20% of market value, and millage rates are set locally.
Insurance Costs
Typical investment property insurance in Arkansas runs $1,800-$3,000/year. Arkansas sits in Tornado Alley's southern reach, so wind and hail coverage is important — especially in the central and eastern parts of the state. Premiums tend to run higher than you might expect for such an affordable housing market, with annual costs typically in the $1,800-$3,000 range depending on location and construction type.
Landlord-Tenant Laws
Arkansas is one of the most landlord-friendly states in the country. It is one of the few states that still allows criminal penalties for tenants who fail to pay rent (though enforcement is rare in practice). Eviction notices can be as short as 3 days for nonpayment, and the overall process typically concludes within 20-30 days. There is no rent control, and no statutory cap on security deposits.
Top Investment Markets in Arkansas
Fayetteville
Home to the University of Arkansas, with a deep student and young professional rental pool driven by the university and the Northwest Arkansas corporate corridor.
Bentonville
Walmart's global headquarters has transformed this city into a magnet for corporate relocations, with population growth exceeding 40% over the past decade.
Little Rock
The state capital offers the most affordable entry points of any state capital in the region, with a diversified economy across government, healthcare, and logistics.
Rogers
Part of the NWA boom, Rogers benefits from proximity to Walmart vendors, the new arts district, and a tight rental market with vacancy below 5%.
Fort Smith
A manufacturing and logistics hub on the Oklahoma border, offering some of the lowest price-to-rent ratios in the state for investors prioritizing cash flow.
DSCR Considerations in Arkansas
The combination of low purchase prices and reasonable rents in Arkansas often produces attractive DSCR ratios right out of the gate. Northwest Arkansas in particular commands rents that punch above the state average due to corporate demand, while property taxes remain modest. Investors should budget carefully for insurance, as severe weather premiums can eat into margins more than the sticker price of the home might suggest.
Run the numbers for Arkansas
Use our free DSCR calculator to see if your Arkansas investment property pencils out.
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