Top 5 Residential Real Estate Investment Markets in Arkansas

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By Trent Seigfried Updated May 24, 2024
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Edited by Michael Yessis

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Walnut Ridge is home to the best residential real estate investment market in Arkansas.

The 72476 zip code in Walnut Ridge presents the greatest opportunity for investors among the 524 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.

Top 5 Arkansas residential real estate markets

RankCity InvestScore Affordability Property value appreciation
1Walnut Ridge1002.841.53%
2Harrisburg96.92.440.69%
3Centerton963.268.42%
4Bono93.92.748.22%
5Pea Ridge93.43.674.19%
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1. Walnut Ridge

We've identified the 72476 zip code in Walnut Ridge as Arkansas's best real estate investment market. Here's why.

πŸ”Ž Key data about Walnut Ridge

Data pointValueRank in state (of 524 markets)
Zip code72476N/A
InvestScore 100Highest
Typical property value $117,478[1]20th lowest
Five-year appreciation 41.53%[2]51st highest
Household income $41,762[3]115th highest
Affordability ratio 2.833rd most affordable
Five-year population growth 15.7%[4]17th highest
Unemployment rate 5.7%[5]80th lowest
Property taxes $420[6]4th lowest
Educational attainment 16.3%[7]96th highest
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Walnut Ridge (zip code 72476) is the best residential real estate investment market in Arkansas. It has the 51st highest property value appreciation among markets we evaluated, with a 41.53% appreciation of the typical property over the last five years.

Walnut Ridge is the 33rd most affordable market among the 524 Arkansas markets we evaluated, with an affordability ratio of 2.8.

2. Harrisburg

The 72432 zip code in Harrisburg is Arkansas's second-best residential real estate investment market.

πŸ”Ž Key data about Harrisburg

Data pointValueRank in state (of 524 markets)
Zip code72432N/A
InvestScore 96.92nd highest
Typical property value $129,941[8]29th lowest
Five-year appreciation 40.69%[9]58th highest
Household income $54,679[10]69th highest
Affordability ratio 2.415th most affordable
Five-year population growth 1.5%[11]65th highest
Unemployment rate 5.7%[12]80th lowest
Property taxes $452[13]7th lowest
Educational attainment 9.2%[14]129th highest
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The 72432 zip code in Harrisburg features a typical property value of $129,941, the 29th lowest in the state.

Property values have appreciated 40.69% over the past five years, the 58th highest increase among evaluated markets in the state. Harrisburg homes have an affordability ratio of 2.4, the 15th most affordable in the state.

3. Centerton

The 72719 zip code in Centerton comes in at No. 3 in our ranking of residential real estate investment markets in Arkansas.

πŸ”Ž Key data about Centerton

Data pointValueRank in state (of 524 markets)
Zip code72719N/A
InvestScore 963rd highest
Typical property value $328,627[15]119th lowest
Five-year appreciation 68.42%[16]15th highest
Household income $101,613[17]3rd highest
Affordability ratio 3.260th most affordable
Five-year population growth 54.3%[18]3rd highest
Unemployment rate 1.2%[19]7th lowest
Property taxes $1,519[20]109th lowest
Educational attainment 35.1%[21]20th highest
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With a typical property value of $328,627, Centerton's 72719 zip code features the 119th lowest property values in the state.

Centerton homes have an affordability ratio of 3.2, the 60th most affordable among the markets we evaluated.

4. Bono

The 72416 zip code in Bono ranks No. 4 among Arkansas's residential real estate investment markets.

πŸ”Ž Key data about Bono

Data pointValueRank in state (of 524 markets)
Zip code72416N/A
InvestScore 93.94th highest
Typical property value $192,643[22]66th lowest
Five-year appreciation 48.22%[23]38th highest
Household income $71,091[24]38th highest
Affordability ratio 2.725th most affordable
Five-year population growth -4.7%[25]100th highest
Unemployment rate 4.5%[26]60th lowest
Property taxes $729[27]49th lowest
Educational attainment 24.2%[28]45th highest
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Property values in Bono's 72416 zip code have seen the 38th highest increase among evaluated markets in the state, with an appreciation of 48.22% over the past five years.

Bono's affordability ratio of 2.7 makes it the 25th most affordable among the 524 markets we evaluated.

5. Pea Ridge

The 72751 zip code in Pea Ridge rounds out our top five residential real estate investment markets in Arkansas.

πŸ”Ž Key data about Pea Ridge

Data pointValueRank in state (of 524 markets)
Zip code72751N/A
InvestScore 93.45th highest
Typical property value $321,880[29]116th lowest
Five-year appreciation 74.19%[30]6th highest
Household income $90,159[31]6th highest
Affordability ratio 3.685th most affordable
Five-year population growth 28.6%[32]6th highest
Unemployment rate 1.6%[33]12nd lowest
Property taxes $1,178[34]92nd lowest
Educational attainment 23.7%[35]49th highest
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Property values in Pea Ridge's 72751 zip code rose 74.19% over the last five years, ranking the city 6th highest among evaluated markets in Arkansas.

Pea Ridge homes have an affordability ratio of 3.6, the 85th most affordable among the markets we evaluated.

How we rank residential real estate markets in Arkansas

We evaluated 524 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. 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. We assign a weight of 20% to typical property values.
  • 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. We assign a weight of 20% to property value appreciation.
  • 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. We assign a weight of 10% to median household income. We assign a weight of 10% to median household income.
  • 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. We assign a weight of 15% to the affordability ratio.
  • 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. We assign a weight of 10% to population growth.
  • 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. We assign a weight of 15% to unemployment rate.
  • Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
  • 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. We assign a weight of 15% to educational attainment.

Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

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Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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