Real Estate Investing in Dermott, Arkansas (71638)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 71638 (Dermott, AR)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 23.9% of homes vacant — above national norms.
- Declining values: -10.9% 5-year CAGR — values have moved lower.
- 1-year downturn: Values declined 14.7% in the last year.
- Elevated poverty: 27.1% poverty rate — can affect rent collection.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Dermott, AR (71638)?
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Market Analysis: 71638 Dermott
The 71638 ZIP stands at an healthy value-add profile — below-median pricing at $56K, a renter base of 36%, and room for operational improvement.
ZIP 71638 favors investors with a contractor on speed dial. From an investor standpoint, the turnkey yield looks ordinary, a renovated unit pulls stronger rent than the unrenovated $792/mo average.
Regionally, 71638 sits on the affordable end of the Drew County map. From a cash-flow lens, the absolute numbers are modest, the spread between acquisition price and post-rehab value is wider than in turnkey ZIPs.
Household income in 71638 supports the rent-lift thesis. 3,313 residents, deep working-age cohort, and the kind of tenant profile that responds to upgraded stock.
ZIP 71638 fits investors who can swing a hammer — or pay someone to swing one well. BRRRR, fix-and-flip, and fix-and-hold all work when the rehab scope is matched to the rent lift.
Here's what matters if you're considering buying a home in Dermott:
Market Trends
Home Value History (with trend line)
📊 How Does 71638 Compare?
| Metric | 71638 | Dermott | Arkansas |
|---|---|---|---|
| Home Value | $56,443 | $56,443 | $216,341 |
| 5-Year CAGR | N/A | N/A | 5.7% |
| Avg Rent | $792 | $792 | - |
| Cap Rate | 10.9% | 10.9% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 71638 (Dermott, AR). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $56,443 |
| Monthly Rent | $792 |
| Price-to-Rent | 5.9:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 16.8% |
| Cap Rate | 10.9% |
| 5-Year IRR | 0.0% |
📈 Home Appreciation
| 1-Year | -14.7% ▼ |
| 3-Year CAGR | -11.3% ▼ |
| 5-Year CAGR | -10.9% ▼ |
| 10-Year CAGR | -5.0% ▼ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (10.9%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 71638
Population: 3,313
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 71638
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
Frequently Asked Questions
What strategy should investors use in Dermott, AR?
Most investors in Dermott, AR run a value-add and BRRRR deals strategy. It aligns with the 4.0/5 investability profile and the market fundamentals.
How well does BRRRR work in Dermott, AR?
Dermott, AR BRRRR deals are a strong. With proper buy-side discipline, operators can recycle most of their capital post-refinance.
Where do home prices stand in Dermott, AR?
Expect median prices around $56K in Dermott, AR. The market has run at a 0.0% 5-year CAGR, so entry costs have been predictable.
What monthly rent should investors expect in Dermott, AR?
Dermott, AR rentals go for roughly $792/mo a month. That puts gross yield in solid territory relative to $56K acquisition costs.
Does house hacking make sense in Dermott, AR?
For house hackers, Dermott, AR is an attractive. The $792/mo rent on a unit helps defray the mortgage on a $56K property.
You know 71638 now. You don’t know where it ranks.
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