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Little Rock vs Fayetteville for Rental Property Investing

Side-by-side comparison of Little Rock, AR and Fayetteville, AR — cap rates, rent, prices, and investment metrics.

Fayetteville wins 4–3 across key metrics
Little Rock leads on cash flow (4.92% vs 4.07% cap rate) · Fayetteville leads on population growth
Metric
Little Rock, AR
Fayetteville, AR
Est. Cap Rate
4.92%
4.07%
Median Home Price
$195,000
$275,000
Median Monthly Rent
$1,100
$1,320
1% Rule
0.56%
0.48%
GRM
14.8x
17.4x
Price / Income
4.0x
5.2x
Property Tax Rate
0.62%
0.61%
Vacancy Rate
6.4%
4.8%
Population Growth
0.5% / yr
2.2% / yr
Annual Appreciation
2.4%
3.2%
Population
202,591
98,710
Median Income
$48,200
$52,400

Little Rock vs Fayetteville: Which Is Better for Investors?

Cash flow: Little Rock has the edge with an estimated cap rate of 4.92% compared to Fayetteville's 4.07%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $195,000 in Little Rock vs $275,000 in Fayetteville, while rents come in at $1,100/mo and $1,320/mo respectively.

Growth & appreciation: Fayetteville is growing faster at 2.2% annually vs Little Rock's 0.5%. Fayetteville leads on home value appreciation at 3.2% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 0.62% in Little Rock vs 0.61% in Fayetteville. Vacancy rates of 6.4% and 4.8% are mixed — Fayetteville has the tighter rental market.

Bottom line: Fayetteville edges out Little Rock on most key metrics. While cap rates are moderate at 4.07%, Fayetteville's overall profile is stronger. Use our free calculators to model specific deals in Little Rock or Fayetteville.

Little Rock, AR
4.92% cap rate · $195,000 median · $1,100/mo
Full analysis →
Fayetteville, AR
4.07% cap rate · $275,000 median · $1,320/mo
Full analysis →
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