Little Rock is one of the best cities in the U.S. for renters, according to a recent report from WalletHub. Over 40% of households in the metro area are occupied by renters, and it looks like a growing number of investors have Little Rock on their radar.
The Little Rock Association of Realtors reports that 60% of the available inventory was sold in December 2021, with sales steadily increasing over the past 12 months. Single-family homes in Little Rock account for the largest percentage of properties sold each month, at 86% of monthly sales volume since December 2020.
Situated along the south bank of the Arkansas River, Little Rock is the capital of Arkansas and the economic and cultural center of Central Arkansas. In this article,we’ll look at 15 great neighborhoods and suburbs in which to look for investment property, including some places where 50% or more of households are renter-occupied.
Key takeaways
- Little Rock is home to 202,591 residents in the city and more than 744,000 in the metropolitan area.
- Metropolitan Little Rock consists of 6 counties—including Pulaski, Faulkner, and Saline—and dozens of cities and small towns.
- The largest cities in Central Arkansas include Little Rock, Conway, North Little Rock, and Benton.
- Home values in Little Rock increased by 13.7% last year, while rents for 3-bedroom homes grew by 10%.
- Neighborhoods in Little Rock where more residents rent than own include Downtown, Briarwood, and Walnut Valley.
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Why invest in Little Rock, Arkansas?
The population of Little Rock surpassed 200,000 residents for the first time ever, with more new residents and businesses moving to the area for a lower cost of living and a better quality of life. Also known as Central Arkansas, the Little Rock metro area is home to over 900,000 residents in 6 counties and dozens of cities and towns.
Unemployment in Little Rock is down to 2.5% as of December 2021. According to the Bureau of Labor Statistics, job sectors with the most growth include finance, information services, and leisure and hospitality. There has been more than $2.5 billion in economic development in Central Arkansas since 1994, and Little Rock has been recognized by Moody’s Investors Services as having one of the most diverse economies in the nation.
A robust economy and population growth are increasing the demand for real estate and rental housing in Little Rock. Zillow reports that through January 31, 2022, home values in Little Rock increased by 13.7% over the past year, while median rents for 3-bedroom rentals rose by 10%. Even though home prices in Little Rock are still around $200,000, about 42% of the households are occupied by renters, according to recent research from Zumper (February 2022).
15 great areas in Little Rock for investment properties
Even though home values in Little Rock increased by nearly 14% over the past year, prices in the metro area are still relatively affordable. The median listing price of a home in Little Rock is $202,000 (January 2022) and homes are selling for slightly less than the listing price.
Realtor.com currently rates the real estate market in Little Rock as a buyer’s market, creating a potential window of opportunity for real estate investors. A buyer’s market means that the supply of homes is greater than the demand for homes.
Here are 15 Little Rock neighborhoods to consider, with demographic and neighborhood data from Realtor.com, Niche.com, and Redfin.
Hillcrest
Hillcrest is ranked as the best neighborhood in Little Rock by Niche.com, and the area also has a large percentage of renters. Hillcrest is home to the Little Rock Zoo, UAMS Hospital, and Allsopp and Knoop parks:
- Population: 8,236
- Median sale price: $239,000
- Change in sales price (year over year): -15.4%
- Days on market: 47
- Median rent: $942
- Renter-occupied households: 44%
- Median household income: $64,295
- ZIP codes: 72202, 72205, 72207
Downtown
Downtown is another neighborhood in Little Rock where most residents rent their homes. Located along the southern shore of the Arkansas River, Downtown is home to 4 famous museums and within walking distance of MacArthur Park:
- Population: 3,220
- Median sale price: $468,000
- Change in sales price (year over year): 146.3%
- Days on market: 138
- Median rent: $627
- Renter-occupied households: 73%
- Median household income: $31,196
- ZIP code: 72201, 72202
Capital View
The Capital View neighborhood is located between Downtown and Hillcrest and is popular with renters. Capital View is near the UAMS Hospital and Arkansas Children’s Hospital. It has a dense suburban feel, with a lot of options for dining and entertainment:
- Population: 3,615
- Median sale price: $120,000
- Change in sales price (year over year): 25.7%
- Days on market: 36
- Median rent: $785
- Renter-occupied households: 49%
- Median household income: $46,933
- ZIP code: 72204
Midtown
Midtown is located just west of Hillcrest, near the Little Rock Zoo and Little Rock Reservoir Park. Midtown has a dense suburban feel, with a lot of restaurants and coffee shops:
- Population: 12,852
- Median sale price: $227,000
- Change in sales price (year over year): 14.1%
- Days on market: 39
- Median rent: $984
- Renter-occupied households: 34%
- Median household income: $73,871
- ZIP code: 72207
Walnut Valley
Located 15 minutes west of Downtown Little Rock via I-630, Walnut Valley is near the Arkansas Heart Hospital and the Baptist Medical Center. The neighborhood has an urban-suburban feel, and more residents rent than own:
- Population: 8,662
- Median sale price: $185,000
- Change in sales price (year over year): 3.4%
- Days on market: 40
- Median rent: $910
- Renter-occupied households: 61%
- Median household income: $50,252
- ZIP codes: 72211, 72212
Rock Creek
Rock Creek is immediately west of Walnut Valley, near the intersection of I-430 and I-630. Rock Creek has a dense suburban feel and is ranked by Niche.com as one of the best neighborhoods in Little Rock:
- Population: 18,320
- Median sale price: $284,000
- Change in sales price (year over year): 18.0%
- Days on market: 25
- Median rent: $1,179
- Renter-occupied households: 39%
- Median household income: $78,764
- ZIP code: 72211
Heights
The Heights neighborhood in Little Rock is 15 minutes northwest of Downtown, within walking distance of the Arkansas River. Heights has an urban-suburban feel and is popular with renters:
- Population: 8,500
- Median sale price: $585,000
- Change in sales price (year over year): 15.4%
- Days on market: 41
- Median rent: $1,144
- Renter-occupied households: 41%
- Median household income: $82,901
- ZIP code: 72207
Reservoir
Reservoir is northeast of the intersection of I-430 and I-630, adjacent to the Little Rock Reservoir Park. Located 15 minutes northwest of Downtown, Reservoir has a dense suburban feel with a lot of coffee shops and restaurants:
- Population: 7,579
- Median sale price: $222,500
- Change in sales price (year over year): 6.0%
- Days on market: 44
- Median rent: $921
- Renter-occupied households: 30%
- Median household income: $74,892
- ZIP code: 72227
West Markham
The West Markham neighborhood is immediately south of Reservoir and is ranked as one of the best neighborhoods to buy a house in Little Rock by Niche.com. West Markham has a sparse suburban feel and a large percentage of renter-occupied households:
- Population: 2,601
- Median sale price: $160,000
- Change in sales price (year over year): 27.2%
- Days on market: 39
- Median rent: $912
- Renter-occupied households: 41%
- Median household income: $54,711
- ZIP code: 72205
River Mountain
The neighborhood of River Mountain is known for its beautiful river views and rising real estate prices. River Mountain has a dense suburban feel and is just 20 minutes northwest of Downtown Little Rock:
- Population: 25,591
- Median sale price: $364,900
- Change in sales price (year over year): 32.7%
- Days on market: 54
- Median rent: $1,180
- Renter-occupied households: 29%
- Median household income: $104,562
- ZIP code: 72223
John Barrow
John Barrow is located near the West Markham neighborhood, about 15 minutes from Downtown Little Rock. John Barrow has a dense suburban feel, and nearly half of the residents rent their homes:
- Population: 17,013
- Median sale price: $138,000
- Change in sales price (year over year): 40.5%
- Days on market: 36
- Median rent: $937
- Renter-occupied households: 47%
- Median household income: $46,162
- ZIP code: 72204
Briarwood
Briarwood is a neighborhood in Little Rock where more than half of the residents rent their homes. Located near the Little Rock Zoo and Boyle Park, about 10 minutes west of Downtown, Briarwood has an urban-suburban feel, with a lot of restaurants and coffee shops:
- Population: 3,232
- Median sale price: $175,000
- Change in sales price (year over year): 23.7%
- Days on market: 36
- Median rent: $922
- Renter-occupied households: 58%
- Median household income: $41,840
- ZIP code: 72205
Boyle Park
Boyle Park is another neighborhood in Little Rock popular with renters. Boyle Park is located immediately south of Briarwood and I-630, and is home to Boyle Park and the Pavilion and within walking distance of the University of Arkansas at Little Rock:
- Population: 10,446
- Median sale price: $95,500
- Change in sales price (year over year): -6.4%
- Days on market: 23
- Median rent: $928
- Renter-occupied households: 55%
- Median household income: $38,241
- ZIP codes: 72204, 72205
Westwood/Pecan Lake
Westwood/Pecan Lake is 15 minutes southwest of Little Rock, near the Boyle Park and John Barrow neighborhoods. Westwood/Pecan Lake has a sparse suburban feel and is ranked as one of the best neighborhoods to buy a house in Little Rock by Niche.com:
- Population: 11,829
- Median sale price: $158,500
- Change in sales price (year over year): 44.7%
- Days on market: 38
- Median rent: $1,308
- Renter-occupied households: 21%
- Median household income: $86,279
- ZIP code: 72204
Otter Creek Crystal
More than half of the residents in the Otter Creek Crystal neighborhood rent their homes. Located 30 minutes southwest of Downtown, Otter Creek Crystal has an urban-suburban feel, with good options for dining and entertainment:
- Population: 9,505
- Median sale price: $201,500
- Change in sales price (year over year): 19.2%
- Days on market: 35
- Median rent: $880
- Renter-occupied households: 55%
- Median household income: $53,551
- ZIP code: 72210
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