Fayetteville Investment Property for Sale - 2024 Rental Home Appreciation

Northwest Arkansas is one of the fastest growing regions in the U.S. From Bentonville to Fort Smith, the northwest Arkansas real estate market has a lot of potential for real estate investors to unlock.

The Fayetteville real estate market, in particular, has the makings of a great investment opportunity. In fact, like Huntsville and Spartanburg, the Fayetteville-Springdale-Rogers MSA is a National Association of Realtors 2022 Hidden Gem for real estate investment opportunities.

Fayetteville is listed as a “hidden gem” because of its population growth, job growth, affordability, and home price appreciation.

The city’s growth, affordability, and home price appreciation should put it on any real estate investor’s list.

Fayetteville's Attractive Housing Market

Arkansas offers more real estate investors than rental property in Little Rock.

Nestled in the foothills of the Ozark Mountains, Fayetteville offers residents great jobs and a low cost of living. It provides real estate investors with affordable investment properties with high appreciation in an often overlooked and rapidly growing market.

Real estate investors can find nearly every property type in Fayetteville’s property listings. This includes everything from single-family homes to multifamily housing and historic homes to new construction.

Fayetteville is home to the University of Arkansas and many great suburbs for real estate investors to consider. They include Bella Vista, Farmington, Rogers, Siloam Springs, and Springdale.

-Bella Vista - Bella Vista is located north of Bentonville in the Fayetteville metropolitan area along Highway 71. It’s known as a recreational community that’s home to 7 golf courses, 100 miles of bike trails, and seven lakes. The median listing price in Bella Vista is $178/sqft, and the median sales price is $340,000. Median rent is $1,700/month. -Farmington - Farmington is located southwest of Fayetteville along Highway 62. It’s a small city that’s also a college town. Farmington attracts families and college students. The median listing price in Farmington is $169/sqft, and the median sales price is $302,500. -Rogers - Rogers is located north of Fayetteville along I-49 between Bentonville and Springdale. It attracts outdoor enthusiasts drawn to the city’s large biking community, lakes, and golf courses. The median listing price in Rogers is $183/sqft, and the median sales price is $447,000. Median rent is $1,450/month. -Siloam Springs - Siloam Springs is located northwest of Fayetteville along Highway 412 and the Oklahoma state line. Like most cities in northwest Arkansas (NWA), Siloam Springs attracts outdoor enthusiasts who love everything the region offers. The median listing price in Siloam Springs is $159/sqft, and the median sales price is $288,500. Median rent is $1,500/month. -Springdale - Springdale is located north of Fayetteville along I-49. It’s the fourth largest city in Arkansas and is known for being a diverse and friendly community. The median listing price in Springdale is $169/sqft, and the median sales price is $309,900. Median rent is $1,650/month.

Rental Home Appreciation in Fayetteville

Fayetteville is an affordable market with above-average home price appreciation. Realtor.com says the median listing price in Fayetteville is $188 per square foot, with a median sale price of $395,000. The median rent is $1,500 per month. A Zillow report found that Fayetteville home prices increased 24.5% since last year.

Not only is Fayetteville affordable, but it also has a robust rental market. Over 50% of Fayetteville households are renter-occupied, and only 2% of houses on the market are available for rent. Low inventory and high demand for single-family homes and multifamily rentals result. This is excellent news for homeowners, real estate investors, and property management companies.

Real estate investors should also consider investing in a Fayetteville vacation rental. Northwest Arkansas attracts many regional tourists drawn to the Ozark Mountains and all they have to offer.

Fayetteville’s strong residential and vacation rental market, combined with its affordability and home price appreciation, make a Fayetteville rental property an excellent prospect for real estate investors looking to increase their cash flow.

Economic Growth in Fayetteville

Fayetteville’s population is growing at a rate of 1.09% per year. That’s a faster population growth rate than Memphis, Miami, and Chicago. It’s the second largest city in Arkansas, and locals believe it may one day pass Little Rock. The reason? Great paying jobs at companies like Walmart and Tysons Foods combined with a low cost of living.

Aside from Walmart and Tysons Foods, several other large employers are headquartered in the Fayetteville-Springdale-Rogers MSA. They include the University of Arkansas and J.B. Hunt Transportation Services. These employers fuel the city’s economic growth and provide jobs that help fuel Fayetteville’s population growth.

With everything Fayetteville has going for it, it’s no wonder NWA is one of the fastest-growing regions in the U.S.