Prescott is home to the best residential real estate investment market in Arkansas.
The 71857 zip code in Prescott presents the greatest opportunity for the best real estate investments among the 2,824 individual real estate markets in Arkansas we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Arkansas
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Prescott | 100 | 1.6 | 17% |
| 2 | Bono | 91.5 | 2.9 | 36% |
| 3 | Austin | 84.7 | 2.8 | 36% |
| 4 | Pine Bluff | 82.6 | 1.8 | 17% |
| 5 | Arkadelphia | 81.2 | 3.1 | 32% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Arkansas.
1. Prescott
We've identified the 71857 zip code in Prescott as Arkansas's best real estate investment market. Here's why.
🔎 Key data about Prescott (71857)
| Data point | Value | Rank in state (of 2,824 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $85,319[1] | 6th lowest |
| Five-year appreciation | 17%[2] | 111th highest |
| Household income | $53,125[3] | 90th highest |
| Affordability ratio | 1.6 | 3rd most affordable |
| Five-year population growth | 4.5%[4] | 18th highest |
| Unemployment rate | 2.5%[5] | lowest |
| Property taxes | $488[6] | 6th lowest |
| Educational attainment | 16%[7] | 89th highest |
Prescott (zip code 71857) is the best residential real estate investment market in Arkansas. It has the 111th highest property value appreciation among markets we evaluated, with a 17% appreciation of the typical property over the last five years.
Prescott is the 3rd most affordable market among the 2,824 Arkansas markets we evaluated, with an affordability ratio of 1.6.
2. Bono
The 72416 zip code in Bono is the runner-up spot for the best real estate investments in Arkansas.
🔎 Key data about Bono (72416)
| Data point | Value | Rank in state (of 2,824 markets) |
|---|---|---|
| InvestScore | 91.5 | 2nd highest |
| Typical property value | $197,815[1] | 61st lowest |
| Five-year appreciation | 36%[2] | 46th highest |
| Household income | $67,448[3] | 50th highest |
| Affordability ratio | 2.9 | 38th most affordable |
| Five-year population growth | 3.4%[4] | 29th highest |
| Unemployment rate | 3.9%[5] | 3rd lowest |
| Property taxes | $792[6] | 46th lowest |
| Educational attainment | 20%[7] | 70th highest |
The 72416 zip code in Bono features a typical property value of $197,815, the 61st lowest in the state.
Property values have appreciated 36% over the past five years, the 46th highest increase among evaluated markets in the state. Bono homes have an affordability ratio of 2.9, the 38th most affordable in the state.
3. Austin
The 72007 zip code in Austin comes in at No. 3 in our ranking of the best residential real estate investment markets in Arkansas.
🔎 Key data about Austin (72007)
| Data point | Value | Rank in state (of 2,824 markets) |
|---|---|---|
| InvestScore | 84.7 | 3rd highest |
| Typical property value | $244,825[1] | 91st lowest |
| Five-year appreciation | 36%[2] | 45th highest |
| Household income | $86,302[3] | 16th highest |
| Affordability ratio | 2.8 | 32nd most affordable |
| Five-year population growth | 6.4%[4] | 10th highest |
| Unemployment rate | 3.9%[5] | 3rd lowest |
| Property taxes | $1,456[6] | 101st lowest |
| Educational attainment | 34%[7] | 26th highest |
With a typical property value of $244,825, Austin's 72007 zip code features the 91st lowest property values in the state.
Austin homes have an affordability ratio of 2.8, the 32nd most affordable among the markets we evaluated.
4. Pine Bluff
The 71603 zip code in Pine Bluff ranks No. 4 among Arkansas's residential real estate investment markets.
🔎 Key data about Pine Bluff (71603)
| Data point | Value | Rank in state (of 2,824 markets) |
|---|---|---|
| InvestScore | 82.6 | 4th highest |
| Typical property value | $93,956[1] | 8th lowest |
| Five-year appreciation | 17%[2] | 108th highest |
| Household income | $53,130[3] | 108th highest |
| Affordability ratio | 1.8 | 6th most affordable |
| Five-year population growth | 1%[4] | 54th highest |
| Unemployment rate | 3.9%[5] | 3rd lowest |
| Property taxes | $874[6] | 55th lowest |
| Educational attainment | 23%[7] | 59th highest |
Property values in Pine Bluff's 71603 zip code have seen the 108th highest increase among evaluated markets in the state, with an appreciation of 17% over the past five years.
Pine Bluff's affordability ratio of 1.8 makes it the 6th most affordable among the 2,824 markets we evaluated.
5. Arkadelphia
The 71923 zip code in Arkadelphia rounds out our top five residential real estate investment markets in Arkansas.
🔎 Key data about Arkadelphia (71923)
| Data point | Value | Rank in state (of 2,824 markets) |
|---|---|---|
| InvestScore | 81.2 | 5th highest |
| Typical property value | $173,751[1] | 51st lowest |
| Five-year appreciation | 32%[2] | 55th highest |
| Household income | $56,089[3] | 55th highest |
| Affordability ratio | 3.1 | 49th most affordable |
| Five-year population growth | 3.5%[4] | 26th highest |
| Unemployment rate | 2.5%[5] | lowest |
| Property taxes | $1,080[6] | 73rd lowest |
| Educational attainment | 30%[7] | 32nd highest |
Property values in Arkadelphia's 71923 zip code rose 32% over the last five years, ranking the city 55th highest among evaluated markets in Arkansas.
Arkadelphia homes have an affordability ratio of 3.1, the 49th most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Arkansas.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Arkansas
To determine the best real estate investments in Arkansas we evaluated 2,824 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Arkansas.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
