1st Advantage MortgageIn Conway, AR, rental investors qualify on the property's rent instead of personal income. The market data behind that: $1,011 median rent, $252,100 median home value and 55% of households renting.
Conway rents, values and tenants
Citywide, Conway renters pay a median $1,011 in gross rent (rent plus utilities), close to the Arkansas median of $947, and owner-occupied homes have a median value of $252,100, well above the Arkansas median of $188,000. Annual median rent is about 4.8% of the median home value in Conway. That is a lean ratio that leaves little room for taxes, insurance and dues, but it blends every housing type, so a house on a specific street needs its own rent comparables.
| Indicator | Arkansas | Conway | Difference |
|---|---|---|---|
| Persons per household | 2.46 | 2.31 | |
| Share in 2-4 unit buildings | 6.5% | 10.6% | +64% |
| Long commuters, 45 min plus | 11.4% | 16.7% | +46% |
| Degree holders, age 25+ | 25.7% | 42.7% | +66% |
| Workers on their own account | 10.4% | 8.2% | -21% |
| Renters paying 30%+ of income | 44.8% | 46.9% | +5% |
| Units sitting vacant | 13.5% | 7.4% | -45% |
| Typical construction year | 1987 | 1998 | |
| Annual rent divided by value | 6.0% | 4.8% | -20% |
| Households that rent | 33.6% | 54.6% | +63% |
| Tax as a share of home value | 0.55% | 0.58% | +5% |
| Annual property tax bill, median | $1,040 | $1,467 | +41% |
| Household income, median | $60,773 | $63,004 | +4% |
| Typical monthly rent | $947 | $1,011 | +7% |
| Residents (Census estimate) | 3,049,391 | 67,642 |
54.6% of households in Conway rent, well above the Arkansas median of 34%. A large renter base supports steady leasing but also means plenty of competing listings. Median household income of $63,004 (close to the Arkansas median of $60,773) sets the ceiling for rent growth, and 47% of renters already spend 30 percent or more of income on rent.
Property types and condition in Conway
Buildings with two or more units make up about 38% of Conway's housing, including 11% in two to four unit buildings and 22% in buildings of five to 19 units. The median home dates to 1998, so newer construction competes with investors and warranties and modern systems can help with insurance and repairs.
The Census counts 7% of Conway housing units as vacant, with a rental vacancy figure of 5.6%.
What the data means for Conway buyers
Yields near 4.8% make Conway a market for careful buyers. The ratio can still work, usually through a lower loan amount, a rent above the median or a property with several units. Newer housing keeps maintenance predictable, which is helpful for out-of-town owners. Because 55% of households rent, vacancies tend to refill, and the pricing question is how much to charge relative to nearby units.
Taxes and risk in Conway
The Census reports median real estate taxes paid of $1,467 in Conway, well above the Arkansas median of $1,040. Against the median value that is an effective rate of roughly 0.58%, compared with 0.55% for Arkansas as a whole. That is about 12% of a year of median rent gone to taxes before the loan is even counted.
The federal National Risk Index scores Faulkner County relatively moderate for overall risk, led by ice storms (very high), tornadoes (relatively high) and strong wind (relatively high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Faulkner County, FEMA index | Level |
|---|---|
| Earthquakes exposure | Relatively Moderate |
| Strong wind exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Ice storms exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Conway exclusions before trusting a premium estimate.
Rent math for Conway buyers
The quick test for Conway: rent of $1,011 divided by a 1.25 ratio allows a total payment of $809, and subtracting $122 in monthly taxes leaves $687 for the loan, insurance and dues. At 1.00 the allowance is the full $889.
Legal checks before a Conway purchase
We have not confirmed a city-specific rental registration or nightly-stay permit program for Conway, so check with the city and with Faulkner County before you buy, and look at any HOA or condominium rules that can be stricter than the city's. For Conway short-term hosts, one state-level point stands out. Arkansas adds a state tourism tax on transient lodging to its sales tax, with local taxes on top, and marketplaces such as Airbnb generally collect the state taxes for bookings they process while hosts answer for local taxes the platform does not collect.
After move-out, the Conway owner has 60 days to return the deposit or account for deductions.
Conway compared with nearby markets
Russellville's median home value of $172,400 is the group's floor and Little Rock's $236,400 its ceiling, while Conway is $252,100.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Russellville | 45% | $972 | $172,400 | 29,162 | $842 |
| Benton | 32% | $1,352 | $212,700 | 36,595 | $1,072 |
| Little Rock | 46% | $1,902 | $236,400 | 203,436 | $1,106 |
| North Little Rock | 55% | $1,591 | $178,900 | 64,538 | $1,069 |
| Conway | 55% | $1,467 | $252,100 | 67,642 | $1,011 |
What fills Conway rentals
The self-employed share of the workforce is 8.2%, and those owners tend to be exactly the buyers DSCR financing was built for. Around the edges, government workers are about 14% of employment, 43% of adults hold a bachelor's degree or higher and 17% of commuters travel 45 minutes or more.
The largest employers listed for Conway for 2023 include Conway Regional Health System, University of Central Arkansas, Acxiom, Conway Public School District and Conway Human Development Center. Large, stable payrolls like these tend to anchor rental demand near their job sites. Higher education in and around Conway includes University of Central Arkansas, Schedler Honors College, Hendrix College and Central Baptist College, which feeds demand for student, staff and faculty housing near campus. Access runs through interstate access via I-40, which shapes where commuters want to live and how long a showing takes.
Before you make an offer in Conway
Run the Conway rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Arkansas markets
- All Arkansas DSCR loans
- DSCR loans in North Little Rock, AR
- DSCR loans in Little Rock, AR
- DSCR loans in Benton, AR
- DSCR loans in Russellville, AR
- Every market we cover
References
- FEMA hazard ratings for Faulkner County
- Wikipedia: Conway, Arkansas
- Arkansas security deposit statute (Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306)
- Arkansas DFA, sales and use tax rates
- Census Bureau ACS 5-year 2020 to 2024 tables
Conway's figures are ACS estimates covering 2020 to 2024 and are not exact counts. Arkansas landlord-tenant summaries draw on the RedFlagLease dataset (CC BY 4.0) and the statutes linked above. Verified October 2026. Ordinances and statutes change, so confirm before acting.
A short buyer checklist
For a Conway rental, request the current lease, the last tax bill and the insurance declarations page early, and confirm which utilities the tenant pays, because each one changes the monthly figure a lender compares with the rent.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How is Conway rent documented for a DSCR loan?
On most files the lender uses the lower of the signed lease rent and the appraiser's market rent for the address in Conway. For orientation, the Census median gross rent here is $1,011 a month.
Do taxes and insurance count in the Conway DSCR ratio?
The denominator is the whole housing payment. Using Conway's median rent of $1,011, a ratio of 1.25 allows $809, and a ratio of 1.00 allows all $1,011.
Are Conway property taxes high for Arkansas?
About $1,467 a year at the median, which is 0.58% of value and well above the Arkansas median of $1,040. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Can nightly stays at a Conway property support a DSCR file?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Arkansas lodging taxes before you underwrite nightly income in Conway.
What does Arkansas law say about deposits at a Conway rental?
Start with Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306. Return window: 60 days. Talk to a Arkansas attorney for a lease form that matches.
What hazard risk does Conway carry for investors?
FEMA's index puts the county at relatively moderate overall. A lender cares about the premium and any flood requirement, which are address-specific in Conway.
Can a company be the borrower on a Conway purchase?
It is optional. Lenders will close in a properly formed LLC and generally want the members to guarantee. Ask your accountant how a AR entity would be taxed.