%
CapRateCity
Free cap rate calculators for every US market
← All markets

Cap Rate Analysis: Fort Smith, AR

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

Moderate — source deals carefully
Based on $155,000 median price and $920/mo median rent
Est. Cap Rate
5.24%
1% Rule
0.59%
Fails
GRM
14.0x
Price / Income
3.8x

Market Data

Median Home Price$155,000
Median Monthly Rent$920
Property Tax Rate0.6%
Population89,000
Population Growth0.3% / yr
Median Household Income$40,800
Vacancy Rate6.8%
Annual Appreciation2%

Cap Rate Calculator — Fort Smith

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.6% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.35%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,737
net operating income
Gross Rent Multiplier
14.0x
Good (<15)
1% Rule
0.59%
✗ Fails
Monthly Cash Flow
$561
before debt service
Annual Breakdown
Gross Rental Income$11,040
Less Vacancy−$751
Effective Income$10,289
Less Operating Expenses−$3,552
Net Operating Income$6,737

Cash-on-Cash Return — Fort Smith

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

$
$38,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.19%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$43,400
$38,750 down + $4,650 closing
Monthly Mortgage
$758
on $116K loan
Monthly Cash Flow
$-224
after all expenses
Annual Cash Flow
$-2,686
before taxes
Cash Flow Breakdown
Monthly Rent$920
Less Expenses−$386
Less Mortgage−$758
Monthly Cash Flow$-224

Is Fort Smith a Good Place to Invest in Rental Property?

Fort Smith, AR has a population of 89,000 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $920/mo produces an estimated cap rate of 5.24%.

Property taxes at 0.6% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.8x, homes cost about 3.8 times the local median income of $40,800. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Fort Smith presents moderate opportunities. Cap rates near 5.24% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

Run a BRRRR analysis for Fort Smith
Model a buy-rehab-refinance deal with Fort Smith data pre-loaded.
Open BRRRR Calculator →