Real Estate Investing in Little Rock, Arkansas (72205)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 72205 (Little Rock, AR)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 17.0% of homes vacant — above national norms.
What’s happening in Little Rock, AR (72205)?
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Market Analysis: 72205 Little Rock
The 72205 ZIP in Little Rock, AR is a local-operator market. Outside capital chasing a $231K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $231K asset, 72205 is the wrong submarket. If the plan prices in friction, the yield can still work.
On balance, 72205 offers a low basis, the region around Little Rock has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Who lives in 72205 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The 72205 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Little Rock:
Property Strategy for 72205
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $201,490 | $1,230 | 4.4% | +6.2% | $100,745 |
| 3BR | $221,062 | $1,650 | 5.4% | +5.5% | $73,687 |
| 4BR | $317,977 | $1,950 | 4.4% | +5.4% | $79,494 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 72205 Compare?
| Metric | 72205 | Little Rock | Little Rock-North Little Rock-Conway, AR | Arkansas |
|---|---|---|---|---|
| Home Value | $231,475 | $268,834 | N/A | $216,341 |
| 5-Year CAGR | 3.7% | 3.8% | N/A | 5.7% |
| Avg Rent | $1,406 | $1,226 | N/A | - |
| Cap Rate | 4.7% | 4.3% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 72205 (Little Rock, AR). Anonymous, moderated, never written by AI.
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Property managers serving Pulaski County
Manage rentals here? List your business →Solid Rock Property Management, LLC offers professional and affordable property management services for Central Arkansas, focusing on excellent customer service. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $231,475 |
| Monthly Rent | $1,406 |
| Price-to-Rent | 13.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.3% |
| Cap Rate | 4.7% |
| 5-Year IRR | 8.5% |
📈 Home Appreciation
| 1-Year | +5.4% ▲ |
| 3-Year CAGR | +2.7% ▲ |
| 5-Year CAGR | +3.7% ▲ |
| 10-Year CAGR | +3.7% ▲ |
🏠 Rent Trends
| 1-Year | +20.7% ▲ |
| 3-Year CAGR | +9.6% ▲ |
| 5-Year CAGR | +8.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.7%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 72205
Population: 22,275
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 72205
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.
🎓 Nearby Colleges & Universities
Investor Insight: With 5,196 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Little Rock, AR a good market for buy-and-hold investors?
Little Rock, AR rates 3.0/5 for investability. With median values at $231K and rents near $1,406/mo, the market offers reasonable fundamentals for rental investors.
Which investment style suits Little Rock, AR?
Most investors in Little Rock, AR run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
How much do tenants pay in Little Rock, AR?
Investors in Little Rock, AR typically see rents near $1,406/mo per month against $231K home values - a solid setup for rental cash flow.
Is Little Rock, AR good for landlords?
Rental owners in Little Rock, AR deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
What are vacancy rates like in Little Rock, AR?
Little Rock, AR carries elevated vacancy risk. Expect even-keeled absorption at market rents of $1,406/mo.
You know 72205 now. You don’t know where it ranks.
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How 72205 ranks in Little Rock-North Little Rock-Conway, AR
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