Arkansas Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in Arkansas — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on Arkansas rentals
Property tax
0.64%
effective rate on median home value
At 0.64% effective, the property tax burden sits in the lower half nationally (rank 13 of 51). Modest annual carrying cost keeps cash flow projections realistic on median-priced homes.
State income tax
4.40%
top marginal rate
A top marginal rate of 4.40% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.
Security deposit rule
State law caps security deposits at 2 months' rent. Charging above the cap exposes the landlord to statutory damages in most states, so build lease templates that respect this ceiling from day one.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in Arkansas
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Arkansas’s 0.64% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Blytheville, AR | $115,156 | $1,064 | $737 | $133 |
| Pine Bluff, AR | $101,382 | $844 | $649 | $48 |
| Jonesboro, AR | $205,822 | $1,300 | $1,317 | $-214 |
| Batesville, AR | $166,034 | $881 | $1,063 | $-298 |
| Paragould, AR | $193,383 | $1,090 | $1,238 | $-299 |
| Searcy, AR | $208,445 | $1,084 | $1,334 | $-391 |
State median across the metros: $205,554 home, $1,084 rent, $-391/mo modeled cash flow.
Track your Arkansas rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Arkansas property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.