Arkansas Home Selling

The Arkansas housing market has seen steady growth, with home prices rising slowly and remaining highly affordable relative to other states. Sellers and buyers benefit from moderate returns on investment and low entry prices. With a median sale price of $271,600 (as of October 2025), Arkansas homes sell for significantly less than the national median of $414,000. The Natural State remains one of the cheapest places to buy real estate in the U.S., second only to West Virginia.

Homes in Arkansas took around 60 days to sell in 2025, which is slightly slower than the U.S. median of closer to 55 days. While some of the nation's hottest housing markets, like Kansas, typically accept offers within just 30 days, Arkansas outpaces slower-moving markets like Louisiana and Mississippi.

With listings up more than 13% year over year, buyers in Arkansas have more options, making homes easier to find and steadying price growth. Though inventory has increased by double-digit percentages year over year, the state maintains a fairly tight 4-month supply of homes. This points to a market that still favors sellers, but is approaching a healthier balance.

Another factor supporting Arkansas's increased supply is new housing construction activity. Arkansas outpaced nearly all its neighbors in new residential construction permits per capita and affordability. According to Realtor.com's Affordability and Homebuilding Report Cards, The Natural State accounted for a 0.9% share of all new construction permits nationwide, right in line with the size of its population. The report card gave Arkansas a B rating, good for eighth overall, highlighting strong homebuilding activity and affordability.

Adding to Arkansas's affordability, the state has a below-average effective property tax rate of 0.57%. This gives Arkansas a strong tax advantage compared to neighboring states like Texas (1.58%), Missouri (0.88%), and Mississippi (0.74%).

In terms of foreclosures, Arkansas saw a moderate rate in October 2025, with one foreclosure in every 4,719 housing units. This positioned the state at number 23 nationwide, with fewer foreclosures than the national rate of 1 in 3,871.

Overall, Arkansas combines some of the country's most affordable housing stock with steady sales and expanding supply. This makes it an attractive destination for buyers and investors, particularly when upfront capital is a concern.

Cities, towns, and neighborhoods across Arkansas offer unique advantages for real estate investors of all types. From affordable homes in small towns to high-demand metro areas, each location has its own mix of property features, tax benefits, and local rules. This creates opportunities for buyers, agents, and investors.

The following locations across Arkansas offer some of the best potential returns on property investment and are generally easier for residential development:

• Bentonville: Bentonville's population has increased 9.8% since 2020, with a 2.7% jump in 2023 alone. The median home value reached $487,000 in October 2025, a 6.2% increase from the prior year. Investors benefit from tech- and logistics-driven demand, though new builds require city design and site approvals.

• Fayetteville: With steady demand from University of Arkansas students and faculty, investors benefit from strong rental income. Homes have a median sale price of around $397,000, with properties selling quickly, often within just 30 days.

• Little Rock: With a steady job market from government and corporate employers, the capital city saw a 10.3% rise in home values between May 2024 and May 2025. The median sale price in 2025 was around $252,000, offering investors an affordable entry point. Average rents in the city are around $1,250 per month.

• Hot Springs Village: The village has a median sales price of around $320,000, with sellers accepting an offer in roughly 50-60 days. Investors here benefit from tourism-driven rental demand, which offers steady returns on investment.

• Jonesboro: With a median home value of around $220,000 and average rents of about $1,270, Jonesboro remains affordable for investors, owner occupants, and renters. Nearly 48% of homes are tenant occupied, showing strong rental demand, boosted by Arkansas State University and steady population growth.

• Walnut Ridge: Walnut Ridge has enjoyed strong multiyear appreciation over the past several years, yet remains highly affordable. With typical property values of around $117,000, Walnut Ridge offers solid investment prospects with an accessible entry point. Walnut Ridge's population also increased 12% between 2020-2025, supporting steady housing demand from buyers and renters alike.

• Eureka Springs: Eureka Springs has a median home sales price of around $415,000, with homes selling in about 75 days when activity peaks during the spring and summer, but taking significantly longer during off-peak seasons. Investors here benefit from the tourism economy, which fuels demand for short-term rentals.

• Pea Ridge: This rural town near Northwest Arkansas is one of the fastest-appreciating housing markets in the state, boasting price gains of more than 70% between 2020-2025. With large lot sizes and a typical home value of around $346,000 (as of September 2025), the town offers strong return prospects for investors. The growing population, which increased 17% between 2023 and 2024 alone, reflects strong demand, boosted by nearby job opportunities.

• Springdale: Home to the world's largest meat producer (Tyson Foods) Springdale enjoys steady job growth and offers real estate investors the possibility of solid returns on investment and rental income. With a median home price of around $348,000, Springdale is more expensive than other areas in Arkansas, but remains well below the national median.

• Centerton: With rising property values and a population increase of more than 54% within the last five years, the city is attracting both homebuyers and developers. The typical property is valued at around $350,000, representing a roughly 3% increase year over year.

Though Arkansas homes tend to sell at a slightly slower pace than the national median, certain property features can help a home sell faster throughout the state, especially in high-demand markets.

To get the best return on investment, sellers and developers should understand local zoning rules before buying or selling a property. Typically, this includes a familiarity with local land use codes, setback limits, and any special regulations. Failure to adhere to these regulations may result in fines, project delays, or losses in value.

Before purchasing a property, many buyers request a zoning verification letter (or zoning compliance letter) to confirm the property's zoning status and permitted uses. This letter can help avoid issues that might affect future use, resale value, or financing. Since zoning regulations differ across cities and counties in Arkansas, it's important to identify markets with strict zoning laws and those with less bureaucracy, and to have a clear understanding of what's required for a proposed development or renovation project.

Strict Zoning Laws

Some locales in Arkansas have strict zoning laws that tightly control how land and buildings may be used. These rules may limit building types, heights, or uses, such as residential or commercial.

• Little Rock: Chapter 36 of Little Rock's Code of Ordinances divides the city into multiple detailed zoning districts and requires strict adherence to use tables that specify what land uses are permitted, conditionally allowed, or prohibited.
• Fayetteville: The city's Unified Development Code has strict rules for new and renovated homes. These include design and material standards, setback limits, and specific regulations for accessory dwelling units (ADUs).
• Bentonville: Bentonville has several overlay zones, like Downtown Core and Edge, with strict rules for signage, building fronts, and landscaping. These design standards must be followed to obtain a permit.

Less Bureaucratic Zoning Laws

These areas have less bureaucratic zoning laws, making it easier and faster to build or renovate:

• Rogers: The city offers online permit applications through its permitting portal. The portal allows users to submit applications, upload plans, make electronic payments, schedule inspections, and track an application's status.
• Pine Bluff: All permission application forms for building permits, plan review, and zoning are available online, and submission is solely by email.
• Hope: The city has multiple zoning districts for commercial, residential, and industrial use. All building permit applications must be submitted using the Online Building Permit Application Portal.

Special Permit Required Via Public Hearing

In some Arkansas cities, you need a special permit for certain projects. This usually involves a public hearing and approval from the local zoning board or planning commission.

• Little Rock: Rezoning requires a Planning Commission hearing, and decisions may be appealed to the City Council.
• Hot Springs: A conditional use permit is required for increases in density and most commercial conversions. The Planning Commission holds public hearings before granting approval.
• Fayetteville: A public hearing is required for rezoning and variances. These hearings are typically held by the Board of Adjustments or the Planning Commission.

Certificate of Occupancy Required

In Arkansas, a Certificate of Occupancy (CO) is required before a property can be legally occupied after new construction, major renovations, or a change in use. While real estate closings may proceed, move-in and utility activations generally wait until the CO is issued. Local building departments grant the CO after final inspections confirm compliance with zoning, safety, and building codes. For buyers, sellers, and investors, understanding CO requirements is key to avoiding delays and ensuring a smooth property transaction.

Historic Commission Approval Required

Some Arkansas cities have historic commissions that protect the look of older neighborhoods. If a property is located in a historic district, homeowners must obtain approval for exterior renovations or other changes to the property's appearance, including the types of materials and paint colors used, to preserve the area's historic character.

• Eureka Springs: A Historic District Commission (HDC) review is required for any exterior work within the district. A Certificate of Appropriateness is usually required for renovations and modifications.
• Little Rock's Quapaw Quarter: Per Little Rock's Quapaw Quarter Historic District Guidelines, any exterior changes in designated districts require a Certificate of Appropriateness.
• Fort Smith: Fort Smith is designated as a Certified Local Government. It has a Historic District Commission, which reviews and approves exterior alterations within historic districts, usually requiring a Certificate of Appropriateness.

In Arkansas, home sellers and developers must follow local zoning laws, permit rules, and any historic district requirements. Skipping this step may delay closings, cause loan issues, lead to fines, or lower your property's value. Below are some cities and counties in Arkansas, categorized by their regulatory climate:

Development-Friendly Areas

These are real estate markets across Arkansas where local rules, permits, and zoning are flexible, making it faster and easier to start and complete projects:

• Bentonville: The city offers online permitting through the eTrakit system, streamlining the submission and management of permits and development applications.
• Rogers: The city operates an online permitting portal that enables users to submit applications for building permits, sign permits, and business licenses.
• Springdale: The Planning Department centralizes zoning, subdivision, and permitting services. Applications and supplemental documents may be submitted via online submission portal.
• Fayetteville: Fayetteville's Development Services consolidates planning, building safety, and licensing using its Civic Access Portal.
• Conway: The city's Building Permits & Inspections Department allows for electronic submission of building permits through its Civic Access Portal (submissions through the portal receive priority processing). Residential permits are approved within 3-5 business days, while commercial permit approvals may take up to 3 weeks.

Moderately Regulated Areas (Somewhat Strict Regulations)

Moderately regulated areas in Arkansas have some rules and permits that take time and planning but don't significantly delay development. Some of these areas include:

• Little Rock: Outside historic areas, the city's Planning and Development Department offers a permit portal to streamline building permits, rezonings, and conditional use applications. However, the city requires a site plan review, which may lengthen the approval process.
• Russellville: The city requires pre-application meetings for building permits to discuss the project with city staff before submitting the final application to the Fire, Building, and Safety Division.
• City of Van Buren: The city's Planning Department requires a public notice and hearings, especially for rezoning, conditional uses, and variance requests.
• Greenwood: Although the Planning and Community Development Department provides an online permitting portal for submitting applications, it requires public notices and hearings for rezonings and variances.
• Bryant: The city provides clear fee schedules and permit checklists to make the permit application process straightforward. However, standard zoning rules may include public hearing requirements for rezonings and conditional use permits.

Highly Restrictive or Bureaucratic Areas

Highly restrictive areas within Arkansas have strict rules, strong community pushback, and slow approval processes, making new development challenging. These areas include:

• Eureka Springs: The city requires a Certificate of Appropriateness for most exterior alterations, repairs, and new construction within the Eureka Springs Historic District.
• Hot Springs: Any exterior alterations, additions, or new construction within the city's historic districts require a Certificate of Appropriateness issued by the Hot Springs Historic District Commission.
• Little Rock Historic Districts: All exterior changes in the city's historic districts require a Certificate of Appropriateness from the Historic District Commission to ensure compatibility with the area's historic character.
• Fort Smith Riverside Historic District: The district is overseen by a Historic District Commission that has a strict review process, including public hearings and adherence to preservation standards, for approving most exterior changes.
• Batesville: The Historic District Commission is responsible for overseeing alterations within designated historic areas. All changes to the exterior of a building require a formal hearing process.

Regulatory Climate Factors

In Arkansas, building codes and zoning laws vary by city and generally affect how quickly and affordably you're able to complete a project. The table below links each regulatory factor to its impact on development, noting the locations within Arkansas where they're often found.

*NIMBYism - Not in My Backyard

Based on an analysis of Arkansas's real estate market, including market trends, local rules, and economic growth, these strategies are the most profitable for house flippers to maximize profit:

Before selling a property in Arkansas, it's a good idea to work with a local real estate agent or certified appraiser, who can review recent comparable sales from the past 90 days. This ensures that your asking price reflects the property's current market value, avoiding either overpricing or underpricing. Once you're familiar with local property values, you can use the following pricing strategies to attract buyers and help maximize sale price and speed:

To get the best price and attract the right buyers, start by determining the type of market condition in your local market. Then, choose the pricing strategy that best suits those conditions and your specific goals. Use the guide below to see which pricing tactic works best in each market condition.

Arkansas's dynamic property market, economic strength, population trends, and local rules shape each region's conditions. Below are some of the main factors driving its housing market performance:

Economic Factors

Arkansas's housing market is shaped by steady job growth in key areas, such as manufacturing, logistics, and technology, especially in Northwest Arkansas and Little Rock. With an unemployment rate of 3.8% (as of August 2025), local employment opportunities create stable income opportunities, spurring consistent demand for homes and rentals. The state ranks first in cost of living and third in housing affordability, which attracts remote workers and retirees from states with higher costs of living.

Demographic and Social Factors

Arkansas's population is growing quickly in cities like Bentonville, Fayetteville, and Hot Springs as in-migration from higher-cost coastal states continues to rise. These areas typically experience strong demand for both home sales and rentals. In addition, college towns, like Fayetteville, Jonesboro, and Conway, enjoy steady rental demand from students and faculty, lowering vacancy risks for investors.

The state's median age is 38.9, implying that more buyers and investors are focused on family-sized properties. Meanwhile, many retirees are downsizing to smaller, more modern properties with lower maintenance costs. Overall, shifting demographics continue to change the types of homes that are most in demand across Arkansas.

Regulatory and Legal Framework

Arkansas has no statewide rent-control laws, providing landlords and investors with the flexibility to set their rents at the prevailing market rate. However, zoning and permitting vary widely by city. Northwest Arkansas cities like Bentonville and Rogers are development friendly, with flexible land-use rules that speed up building projects. In contrast, historic districts in Little Rock, Eureka Springs, and Hot Springs have strict design standards that require a Certificate of Appropriateness.

Some cities, like Little Rock, offer investment incentives that encourage property investment. However, developers should always check with local offices to understand rules and available benefits before investing in any project.

Taxation and Fiscal Policy

Arkansas offers lower property taxes than the U.S. average, helping reduce holding costs and improve cash flow for investors. However, it does impose an income tax and capital gains tax at the state level, so developers should consider these costs when planning to sell their properties. Programs like the Rehabilitation Tax Credits, especially in cities like Little Rock, Fort Smith, and Hot Springs, support downtown redevelopment. Similarly, the Low-Income Housing Tax Credits Program makes housing affordable for low-income households across Arkansas.

Housing Policy and Government Programs

The Arkansas Development Finance Authority (ADFA) offers low-interest loans and financing options to assist first-time buyers and support development of mixed-income housing. The Down Payment Assistance Program provides support for down payments and closing costs, helping boost entry-level homeownership. These housing incentives aim to close supply gaps, especially in cities such as Little Rock, Fayetteville, and Bentonville. For smaller towns, USDA housing repair loans and grants encourage homebuilding and renovations in rural areas of the state.

Infrastructure and Development Trends

Transportation improvements, such as Interstate 49 and Interstate 30 projects, are opening new growth areas in Benton and Pulaski counties, boosting suburban development near Springdale, Conway, and North Little Rock. Retail, office, and amenities grow alongside jobs, with attractions like Bentonville's Crystal Bridges Museum and Little Rock's River Market driving nearby residential demand.

Market Sentiment and Investor Behavior

Arkansas's housing market is steady overall, but a price-to-list ratio of 96.8% shows that buyers are picking up steam and reclaiming negotiating power. Successful investors in Arkansas may use different strategies, depending on current market conditions. Long-term rental approaches like BRRRR are now popular in Fayetteville, Jonesboro, and parts of Little Rock, where there's steady rental demand. Flipping and wholetailing are more prevalent in suburbs like Springdale and Rogers, while Pine Bluff and Delta attract deep-value rehab buyers. Short-term vacation rentals thrive in tourist towns like Hot Springs and Eureka Springs, though these areas face seasonal demand challenges and potentially restrictive local rules.

Arkansas's real estate market offers great opportunities for buyers and investors with some of the most affordable homes in the nation. Northwest Arkansas is growing fast, driven by big companies and the arrival of new residents, boosting demand for home sales and rentals. Central Arkansas continues to show its resilience and affordability, offering investors the prospect of solid returns.

Local rules vary widely across Arkansas. Some cities help make development easier, while others, especially historic areas, impose tougher regulations. Successful investors aim to match their strategies to their property's locale to ensure their property sells fast and for top dollar. Therefore, understanding the local market and zoning laws where you intend to invest is essential. To help get a better feel for the market, it's also a good idea to work with local real estate agents and certified appraisers, who can help ensure your pricing reflects the home's true market value.