Northwest Arkansas (NWA) is presently one of many finest undervalued markets to be investing in, due to its mixture of job progress, appreciation, and relative affordability.
I’ve already written three articles that examined one of the best markets for various causes (home hacking, earnings progress, and total financial system), and NWA has a manner of discovering itself on every of those lists.
I’ll be analyzing one of the best particular person cities inside NWA for traders. Actual property is a location-based enterprise, in any case.
However first, to recap, listed below are the underlying fundamentals behind NWA’s funding potential as an entire.
Northwest Arkansas Inhabitants and Job Progress
The NWA space has seen sturdy inhabitants and job progress over a five- and one-year interval, due to Walmart’s return-to-office coverage, a rising variety of corporations shifting to the world, and an total inexpensive value of dwelling.
NWA’s inhabitants grew by 2.35% over a one-year interval (the nationwide common was 0.53%).
NWA skilled a 1.61% enhance in jobs over the identical one-year interval (the nationwide common was 1.66%).
Northwest Arkansas Revenue Progress
In response to the Bureau of Labor Statistics (BLS), the nationwide median wage is $44,830. NWA’s median earnings is presently estimated to be $58,475 as of September 2024, up from September 2023’s estimate of $53,934.
Northwest Arkansas Family Progress
Usually, this could be the place I’d put a graph monitoring the progress in costs. In spite of everything, for many metros, will increase in earnings are extremely correlated with will increase in property values. Nonetheless, in my analysis, I found that in NWA, property values had a better correlation with the variety of households (a 0.79 correlation, indicating a pretty sturdy constructive relationship).
Let’s check out family progress for the market. I’ve additionally included whole items as effectively, to gauge how demand is assembly provide.
The market has achieved a fantastic job of absorbing the incoming items. To date, the proportion of vacant items isn’t the bottom within the nation, nevertheless it’s nonetheless beneath the nationwide common (9.79%).
Northwest Arkansas Median Value
Now that we’ve seen that households are growing and know that family progress is strongly correlated with worth progress in NWA over time let’s lastly take a take a look at the expansion in median worth.
The median house worth grew an intimidating 17.3% from 2022 to 2023 (in comparison with the nationwide common of 6.2%), in line with the U.S. Census. I don’t assume NWA will proceed to see appreciation like this sooner or later, nevertheless it seems to be an indicator that the underlying market fundamentals I recapped do have a constructive impact on house costs.
Which Locations in NWA Are the Finest for Actual Property Buyers?
Northwest Arkansas is made up of many alternative cities and communities, so which of them may be finest for actual property traders? I’ll be analyzing this from the lens of an out-of-state investor who desires a conventional long-term buy-and-hold property (sorry for now, STR people).
Right here is an introductory map if you happen to’re not accustomed to the world:
Inhabitants progress by metropolis in Northwest Arkansas
For starters, let’s take a look at the inhabitants of every metropolis in NWA:
Now let’s take a look at the five-year inhabitants progress for every metropolis:
Highfill has an unimaginable 114% progress price, however its inhabitants is beneath 2,000 individuals. Centerton and Bentonville are seeing sturdy progress numbers relative to their measurement, at 53% and 22%, respectively. Fayetteville, the most important metropolis within the metro space, additionally boasts 16% progress in inhabitants, which beats the progress of smaller cities like Springdale (12%) and Rogers (10%).
Demand vs. provide, by metropolis
Inhabitants progress doesn’t occur in a vacuum. Even when a metropolis experiences progress, if builders sustain with demand and construct greater than sufficient items, it’s possible you’ll expertise sturdy competitors in your rental properties from different traders.
There are two metrics I like to make use of to trace provide and demand inside a market. The primary is the emptiness price:
I like how the heart of the area (Rogers, Cave Springs, Lowell, and Springdale) has comparatively low emptiness charges in comparison with their anchor metropolis counterparts (Bentonville and Fayetteville).
Now, let’s analyze a metric known as “web family progress.” This takes the five-year family progress after which subtracts the five-year provide progress. It’s meant to be a rule-of-thumb measurement to see if family progress is outpacing provide progress.
In most markets, this measurement might be detrimental. However usually, the upper the quantity, the extra family progress is happening relative to provide.
It seems like Bentonville and Centerton are rising provide quicker than family progress is happening. This is often the case for many markets and will imply extra competitors amongst traders and sellers.
In case you wished to spend money on a market close to giant employers, Rogers, Lowell, and Springdale could also be a greater guess because of provide and demand dynamics alone. Nonetheless, you’ll nonetheless wish to take different metrics into consideration, like earnings, worth, and lease progress.
Revenue progress by metropolis
Now, let’s take a look at the present median earnings for every metropolis:
The focus of upper incomes round Benton County isn’t a surprise. This is the place Walmart HQ is, together with many different white-collar jobs.
Let’s take a look at five-year progress now:
It’s good to see locations in Washington County, like Fayetteville and Springdale, whose median incomes are lower than their Benton County counterparts (see earnings progress). However it seems that the residents of locations like Bentonville, Rogers, Cave Springs, Centerton, and Bella Vista have a better earnings on common.
Median worth and lease progress by metropolis
Let’s check out five-year worth progress for every metropolis:
Each “important metropolis” noticed sturdy worth progress over a five-year interval. I’d prefer to particularly level out Pea Ridge, whose median worth grew 82%, but nonetheless solely has an inexpensive median worth of $222,000 (as of 2022), and is simply a 30-minute drive to Walmart HQ, and never too removed from different employers as effectively.
Springdale and Rogers stay inexpensive cities with sturdy appreciation (whereas Centerton, Bentonville, and Fayetteville had even stronger appreciation charges).
Now let’s take a look at lease progress:
The factor about worth and lease knowledge from the U.S. Census is that their numbers are often lower than what they’re in actuality. So, count on the median worth and median lease to truly be greater than what you see on these maps.
So, what precisely do you have to be in search of? Simply be certain that the cities have comparatively strong lease progress. For instance, Springdale, Rogers, and Centerton are experiencing greater lease progress than Fayetteville. It doesn’t make Fayetteville a much less enticing market total, nevertheless it issues, particularly since Rogers and Centerton have already got greater appreciation charges than Fayetteville.
Let’s check out rent-to-price ratios (as of the 2022 Census ACS five-year survey):
The common rent-to-price ratio within the MSA is 0.29%, so something above that’s what I’d think about higher than common for the NWA space.
It’s no shock the cities instantly surrounding the anchor cities of Bentonville (0.28%) and Fayetteville (0.27%) have a better rent-to-price ratio: They’ve a decrease median worth.
You’ll additionally discover many outer cities seem to have even greater rent-to-price ratios, like Gravette (0.50%), Pea Ridge (0.48%), and Elkins (0.54%). In these circumstances, it’s all the time useful to see what proportion of items are occupied by renters. Let’s check out what the Census knowledge tells us:
Elkins, Pea Ridge, and Bella Vista, whereas having good rent-to-price ratios, don’t have as many tenants proportional to their measurement. Nonetheless, Centerton has an excellent mixture of each. So does Rogers and Springdale.
I’ll be placing all of this knowledge collectively to calculate an “funding rating” for every metropolis within the NWA space, with an emphasis on affordability, money circulation, and future progress in inhabitants and residential worth appreciation.
However first, I believe it’d be useful so that you can get opinions on every space from a boots-on-the-ground staff. I’ve invited an investor-friendly actual property agent who helps out-of-state (and native) traders navigate every market, in addition to two property managers who actively handle properties within the space, to provide their tackle the professionals and cons of every metropolis within the NWA space. I believe you’ll discover their insights extraordinarily useful and actionable.
An Investor-Pleasant Actual Property Agent on NWA
Right here’s what Zach Stanley, an investor-friendly agent featured on the BiggerPockets Agent Finder, has to say concerning the totally different markets in NWA:
“I’ve 5 to seven calls per week with traders everywhere in the nation, and even domestically right here, that each one have totally different investing methods. So I’ve seen the positives and negatives of the cities right here domestically.
Under are my professionals and cons for traders in every city:
Fayetteville
- Professionals: Fayetteville is a cool/funky faculty city, with a number of progress. Fayetteville is surrounded by nice cities which have tons of land and areas for improvement, so the potential is limitless at this level for the world. Fayetteville has seen nice appreciation in house costs and lease in recent times, and any properties across the college inside a 10-minute drive are in a position to ask for very excessive rents per room because of the College of Arkansas having a housing disaster and never having sufficient rooms for the scholars. This case permits for offers to begin making sense actually fast.
- Cons: Fayetteville has pushed out a good quantity of native enterprise in previous years because of some left-leaning insurance policies. Due to this, some companies have packed their baggage and moved to the Rogers and Bentonville space.
Springdale
- Professionals: Springdale has some huge cash and improvement being poured into and across the downtown space. Due to this, now we have seen house costs enhance drastically across the downtown space, and I predict it’ll proceed to rise in recent times. Springdale can be one of the crucial inexpensive locations to purchase properties in all of Northwest Arkansas.
- Cons: Springdale has all the time been town that appears to be lagging behind the primary cities right here domestically (Fayetteville, Rogers, and Bentonville being the others). Plenty of this is because of a bigger quantity of some low B- and C-class neighborhoods that drag the areas round them down as effectively.
Rogers
- Professionals: Rogers is a powerhouse that invitations companies to calm down there and has a few of the finest properties and areas of leisure in all of NWA. It’s fairly central on the map, so you possibly can shoot as much as Bentonville fairly simply and additionally get south to Fayetteville if wanted as effectively. Rogers has the Pinnacle Hills space, which is rising quickly and is a very good place to buy, stay, have dinner, go to concert events, and many others. Folks even actually love the downtown Rogers space, because it affords a special vibe than the opposite 4 downtowns and has a number of enjoyable issues to do. I personally personal three properties near downtown Rogers, so I imagine within the progress there.
- Cons: You possibly can run into some C-class neighborhoods in Rogers as you make your manner extra east from the interstate. Housing costs in comparability with rents oftentimes make it powerful to money circulation on leases in these areas as effectively.
Bentonville
- Professionals: There are such a lot of professionals about Bentonville, it is exhausting to place in a couple of sentences. Bentonville is the house base of Walmart headquarters, which is likely one of the important powerhouses of this space. A couple of different powerhouses could be Tyson Meals, JB Hunt trucking, George’s Hen, and Simmons Hen.
- Bentonville is house to some wonderful actual property, Crystal Bridges Artwork Museum, and a quickly rising inhabitants that needs to be doubling within the subsequent 10 to fifteen years. Bentonville might be the rationale why most individuals hear about NWA.
- There are some nice subcommunities which are rising due to the expansion of Bentonville that I believe are nice areas to spend money on. One of these being Centerton, the place loads of my private investing purchasers have been investing. Additionally, I actually just like the potential and the expansion I am seeing from Highfill. Highfill is the city closest to our regional airport, and it does not take a rocket scientist to know this space will be rising drastically within the coming years.
- Cons: With such an important space and so many eyeballs on one spot, the costs have shot up drastically, making it an space the place plenty of actual property investing offers simply do not make sense anymore. Sure, you possibly can park some money in Bentonville actual property and hope for it to understand effectively for the following 10 to fifteen years and even longer, however you’ll most doubtless be dropping cash month-to-month on money circulation within the meantime.
Bella Vista
- Professionals: Bella Vista is one among my favourite locations in all of NWA. It’s near downtown Bentonville and a stupendous place to personal a single-family residential house. STR properties can generally do effectively right here when you’ve got an important Realtor pointing you in the appropriate path (AKA the individual penning this). This metropolis is the place I personally construct a couple of properties a yr as effectively, because it’s one of many final areas I really feel in NWA the place you should purchase inexpensive land to construct on if you happen to do not wish to be a bigger manufacturing builder.
- Walmart’s LLC Blue Crane not too long ago purchased 2,700 acres in South Bella Vista as effectively, and there are some nice plans I’ve heard that must do with biking that needs to be big for the world as effectively. So far as appreciation goes, I believe Bella Vista is a spot the place house costs will enhance dramatically within the coming years.
- Cons: Bella Vista primarily has householders and never renters, so there’s not a ton of knowledge for leases, and the lease costs are sometimes decrease than the remainder of the world. The commute from Bella Vista to different locations in NWA is longer, and that may be a draw back as effectively.
In case you’d like Zach Stanley’s assist navigating the NWA market in your personal investments, you possibly can join with him right here.
A Property Supervisor on the Native NWA Market
I assumed an out-of-state investor’s information to NWA could be incomplete with out listening to from a property supervisor (PM) as effectively. Right here’s what Nick Slagle, an NWA-focused property supervisor featured on our BiggerPockets Property Supervisor Finder, has to say concerning the particular person markets inside NWA:
“There are 4 important ‘cities’ that make-up Northwest Arkansas, though, to outsiders, it’ll principally seem as one steady metropolis. So as of inhabitants, largest to smallest, it goes Fayetteville, Springdale, Rogers, and Bentonville.
Walmart, Tyson Meals, and JB Hunt are headquartered right here in NWA, and every has an affect within the form of the financial system. Though JB Hunt and Tyson Meals are older corporations than Walmart, the fact is that Walmart performs the largest position within the financial system of NWA. The Walton household additionally invests huge sums into the native artwork, leisure, schooling, and tradition of the world. Crystal Bridges Museum of American Artwork, the huge community of bicycling trails (Razorback Greenway and OZ trails), and the Alice L. Walton College of Medication are some of the apparent examples of the household’s funding in our space.
Fayetteville’s (pop. 100,000) financial system and tradition is centered across the College of Arkansas, which is its largest employer, in addition to a giant chunk of the inhabitants (33,000+ enrolled fall 2024). The median age in Fayetteville is beneath 30 years. It is no shock that extra households are renters than within the different cities of NWA, however this can be a double-edged sword. Youthful tenants are typically extra cellular and sometimes solely keep for the preliminary lease time period or the length of their faculty years. Fayetteville lease demand cycles are closely associated to the varsity calendar, each due to college students and additionally younger professionals who’ve not too long ago graduated.
Springdale’s (pop. 90,000) financial system is closely dependent on the poultry and meals trade. Tyson Meals, Cargill, and others have a presence in Springdale, with Tyson having its world headquarters right here. The workforce right here may simply be described as predominantly blue collar. There are a number of meals processing vegetation and factories in Springdale. Plenty of tradesmen that work within the booming NWA building name Springdale house. Residential leases in Springdale typically catch barely decrease lease than the remainder of NWA, however traders are rewarded with tenants who have a tendency to remain in place for a few years.
Rogers (pop. 75,000) is usually missed, however is my private favourite of the main 4 cities, each from an investing and a top quality of life perspective. In some ways, Rogers is an financial system that’s married to Bentonville’s. Walmart’s first retailer was opened within the bigger of the 2 Benton County cities again in 1962, and it has been a rising metropolis ever since.
Rogers is a extra established metropolis with loads of alternatives to purchase 20-to-40-year-old homes and add worth. Are you able to say BRRRR!? Rogers has an excellent mixture of each blue- and white-collar residents. The Pinnacle Hills space of Rogers is house to purchasing, eating, and leisure, in addition to quite a few main company places of work: PepsiCo, Nestle, Basic Mills, Reckitt Benckiser, and Johnson & Johnson, to call a couple of.
Rogers and Bentonville are mainly one steady group, with many individuals dwelling in a single and dealing within the different.
Bentonville (pop. 60,000) has not too long ago grow to be probably the most well-known and investor-desired metropolis in Northwest Arkansas. For that reason, I would counsel that out-of-state traders look elsewhere in NWA for an excellent combine of money circulation and appreciation.
Money circulation goes to be troublesome to search out in Bentonville, however there isn’t any denying the appreciation that now we have seen during the last 15 years. Each Bentonville and Rogers have seen quite a few high-end, giant residence complexes accomplished within the final three years. These appear to be absorbed effectively, however I have noticed a softening within the single-family rental market in Bentonville not too long ago as in comparison with the height of a few years in the past, after we had leases beginning inside days of the earlier ending.
A few different notable cities price contemplating:
Centerton (pop. 24,000) has been a bed room group for fairly some time now, however not too long ago has seen a much-needed enhance in industrial improvement. There are a couple of eating places and purchasing choices, however nonetheless, for probably the most half, individuals who stay in Centerton work in Bentonville. Centerton is mainly an echo of the Bentonville market, with a touch decrease lease price and residential values. However nobody can actually inform the distinction, besides for who sends the water invoice.
Pea Ridge (tough pop. guess 10,000) is an attention-grabbing alternative for long-term maintain traders. It is just a little out of the best way proper now, and folks have to commute to Bentonville, Rogers, and past for work, nevertheless it seems when driving that there is not a cow pasture that hasn’t been divided right into a subdivision.
Actually, although, there is plenty of vacant land nonetheless accessible for future improvement. Pea Ridge jogs my memory of the Centerton of 20 years in the past. Two-lane Arkansas Highways 72 and 94 connect with Bentonville and Rogers, with lane-adding building underway on Freeway 72. First-time homebuyers and traders alike are starting to flock to Pea Ridge. What was as soon as a quiet little city has been discovered, and I predict massive appreciation sooner or later for house costs right here.”
In case you skimmed Nick’s response, I urge you to return and learn it once more. There are a lot of insights right here from a boots-on-the-ground professional property supervisor that you need to take note of if you happen to plan on investing on this market.
In case you’d prefer to ask Nick Slagle extra questions on any explicit market and the rents you would possibly be capable of cost for a given property, you possibly can attain him at [email protected].
One other Property Supervisor on NWA’s Native Markets
For the aim of serving to out-of-state traders navigate an unfamiliar market, I wished to get a second opinion from one other property supervisor within the NWA space. I reached out to Tyler Casey, who’s additionally featured on our BiggerPockets Property Supervisor Finder. I extremely advocate studying what he needed to say:
“I am Tyler Casey with Professional X Property Administration; we presently handle 1,900 rental items and repair the Fayetteville-Bentonville Metro Space, also known as Northwest Arkansas, or NWA. We primarily handle single and multifamily residential properties, with a small portion being mixed-use industrial properties.
Fayetteville
Whereas Fayetteville is very a lot a university market, it does nonetheless have a considerably numerous tenant pool. Occupancy charges are sturdy throughout NWA, and Fayetteville isn’t any totally different. The one disadvantage to this market is that there’s some inherent seasonality with semester breaks. You possibly can count on greater emptiness in the summertime months and sure extra turnover usually with a heavy pupil tenant pool.
Springdale
This market, being the least glamorous of the foremost cities within the metro, could seem probably the most enticing from a money circulation perspective to traders. Springdale is way more of a working-class tenant pool, with Tyson Meals being headquartered right here, in addition to JB Hunt headquarters being located in Lowell, an adjoining suburb simply to the north. In my view, this market presents a singular alternative for buy-and-hold traders in search of future appreciation potential with out fairly as daunting a price ticket.
Rogers
Rogers’ proximity to each Bentonville and Springdale makes it a really perfect spot to name house for workers of all three of the foremost employers within the space: Walmart, Tyson, and JB Hunt. Rogers is experiencing huge progress because of this supreme geographic location. There are additionally nonetheless loads of older properties/multifamily in want of some renovation to make the most of for the value-add-minded investor.
Bentonville
This metropolis is probably going thought of probably the most glamorous of the markets in NWA, with the speedy progress being created by Walmart’s enlargement. Walmart is constructing a large new headquarters and selling a serious back-to-office initiative with its distant staff. Most individuals predict nice appreciation on this market.
All the foremost markets and lots of the surrounding areas in NWA have actually sturdy future progress/appreciation potential, all have very sturdy occupancy charges (within the mid-high 90% vary), and I count on that to proceed primarily based on the tendencies I am seeing available in the market. I imagine new building, one thing we are able to additionally help with, to be a big alternative within the metro with the anticipated inhabitants increase.”
Tyler Casey is yet one more boots-on-the-ground professional that can show you how to navigate which rental markets may be finest for you as an investor. You possibly can attain out to him on his web site right here.
Placing It All Collectively: Funding Rating
Whereas I imagine you need to have sufficient data to choose which particular cities you’d prefer to spend money on the NWA space, I created an algorithm to assist rank every metropolis by investability. I’ve put an emphasis on affordability and money circulation, whereas additionally holding worth and lease progress charges in thoughts.
Listed here are the outcomes. Every metropolis is ranked by its funding potential.
For brokers, property managers, and fellow traders who disagree with this map, I’d love so that you can clarify why within the feedback beneath. The algorithm is nowhere close to good and may completely be improved. I welcome all suggestions. It’ll assist me refine the algorithm, which can assist extra traders navigate this market.
Ultimate Ideas
The general NWA space is rising in inhabitants, and property values are appreciating at a wholesome price. So long as you’re comparatively near employers (or the college in Fayetteville), there needs to be comparatively good demand for rental items.
In case you completely will need to have money circulation, these are strong markets:
In case you can afford it and wish to make investments for fairness progress, these cities may be for you:
And if you happen to’d like a mixture of each:
As a basic disclaimer, good offers can be discovered in any market. In case you’re prepared to begin in search of an funding property within the space, I like to recommend utilizing the BiggerPockets Deal Finder (it’s how I discovered my funding property in Fayetteville).
I hope this breakdown of every metropolis within the NWA helped. In case you have any questions or suggestions, please let me know within the feedback beneath.
Discover the Hottest Markets of 2024!
Effortlessly uncover your subsequent funding hotspot with the model new BiggerPockets Market Finder, that includes detailed metrics and insights for all U.S. markets.

Observe By BiggerPockets: These are opinions written by the creator and don’t essentially characterize the opinions of BiggerPockets.