Real Estate Investing in Little Rock, Arkansas (72227)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 72227 (Little Rock, AR)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 13.0% of homes vacant — above national norms.
What’s happening in Little Rock, AR (72227)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 72227 Little Rock
Not every below-median market is a bargain. Little Rock's 72227 ZIP shows signals that favor experienced operators who can absorb the risk $279K pricing implies.
Rent of $1,206/mo on a $279K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 72227 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Little Rock have seen price recovery that 72227 has not matched. Pulaski County data supports the view that the spread is structural rather than temporary.
Resident income in 72227 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategy in 72227 is an operator game, not a passive one. On the rental side, entry prices of $279K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Little Rock:
Property Strategy for 72227
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $171,910 | $1,140 | 4.8% | +6.1% | $85,955 |
| 3BR | $250,925 | $1,530 | 4.4% | +6.2% | $83,642 |
| 4BR | $313,193 | $1,810 | 4.2% | +5.8% | $78,298 |
| 5BR | $500,513 | — | — | +6.2% | $100,103 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 72227 Compare?
| Metric | 72227 | Little Rock | Little Rock-North Little Rock-Conway, AR | Arkansas |
|---|---|---|---|---|
| Home Value | $279,425 | $268,834 | N/A | $216,341 |
| 5-Year CAGR | 4.6% | 3.8% | N/A | 5.7% |
| Avg Rent | $1,206 | $1,226 | N/A | - |
| Cap Rate | 3.4% | 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 72227 (Little Rock, AR). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $279,425 |
| Monthly Rent | $1,206 |
| Price-to-Rent | 19.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.2% |
| Cap Rate | 3.4% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | +5.9% ▲ |
| 3-Year CAGR | +3.2% ▲ |
| 5-Year CAGR | +4.6% ▲ |
| 10-Year CAGR | +4.3% ▲ |
🏠 Rent Trends
| 1-Year | +12.6% ▲ |
| 3-Year CAGR | +8.8% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.4%). 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 72227
Population: 11,800
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 72227
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
LITTLE ROCK HALL STEAM MAGNET HIGH SCHOOL
PULASKI HEIGHTS MIDDLE SCHOOL
MCDERMOTT ELEMENTARY SCHOOL
BRADY ELEMENTARY SCHOOL
FOREST HEIGHTS STEM ACADEMY
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 7,103 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Are renters plentiful in Little Rock, AR?
The tenant pool in Little Rock, AR is solid, supported by local employment and population fundamentals. Rents of $1,206/mo are well-absorbed by the market.
Does Little Rock, AR favor landlords or tenants?
For rental operators, Little Rock, AR rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
What are home prices like in Little Rock, AR?
In Little Rock, AR the median home value sits at $279K. Against the broader AR market, that reads as reasonable for most investors.
What real estate strategy is ideal for Little Rock, AR?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Little Rock, AR. The numbers - $279K homes against $1,206/mo rents - support that play.
Is Little Rock, AR a good market for FHA house hackers?
The house hack math a challenging in Little Rock, AR. Owner-occupant buyers benefit from the $1,206/mo rents and $279K home values.
You know 72227 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 72227 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 72227 ranks in Little Rock-North Little Rock-Conway, AR
Every ZIP in this metro, ranked. Free.
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