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Cap Rate Analysis: Fayetteville, AR

Investment metrics, interactive calculators, and data-driven analysis for Fayetteville rental properties.

Moderate — source deals carefully
Based on $275,000 median price and $1,320/mo median rent
Est. Cap Rate
4.07%
1% Rule
0.48%
Fails
GRM
17.4x
Price / Income
5.2x

Market Data

Median Home Price$275,000
Median Monthly Rent$1,320
Property Tax Rate0.61%
Population98,710
Population Growth2.2% / yr
Median Household Income$52,400
Vacancy Rate4.8%
Annual Appreciation3.2%

Cap Rate Calculator — Fayetteville

Pre-filled with Fayetteville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.61% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.43%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,440
net operating income
Gross Rent Multiplier
17.4x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$787
before debt service
Annual Breakdown
Gross Rental Income$15,840
Less Vacancy−$760
Effective Income$15,080
Less Operating Expenses−$5,640
Net Operating Income$9,440

Cash-on-Cash Return — Fayetteville

Factor in financing to see your actual return on invested capital in Fayetteville.

$
$68,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.02%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$77,000
$68,750 down + $8,250 closing
Monthly Mortgage
$1,345
on $206K loan
Monthly Cash Flow
$-579
after all expenses
Annual Cash Flow
$-6,943
before taxes
Cash Flow Breakdown
Monthly Rent$1,320
Less Expenses−$554
Less Mortgage−$1,345
Monthly Cash Flow$-579

Is Fayetteville a Good Place to Invest in Rental Property?

Fayetteville, AR has a population of 98,710 and has been growing at 2.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $275,000 paired with median rents of $1,320/mo produces an estimated cap rate of 4.07%.

Property taxes at 0.61% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 5.2x, homes cost about 5.2 times the local median income of $52,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Fayetteville presents moderate opportunities. Cap rates near 4.07% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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