1st Advantage MortgageFor Fayetteville, AR rentals, the DSCR test compares rent to the full payment. The Census medians that frame it are $1,065 rent, $349,600 value and $1,946 in yearly taxes.
What the numbers say about Fayetteville
For Fayetteville, the latest five-year ACS shows a median gross rent of $1,065 (about 12% above the Arkansas median of $947) and a median owner-occupied value of $349,600 (well above the Arkansas median of $188,000). Put the two medians together and Fayetteville shows a gross yield of 3.7%, a thin gross ratio, which tells you purchase prices are high relative to rent. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.
| Indicator | Arkansas | Fayetteville | Difference |
|---|---|---|---|
| Persons per household | 2.46 | 2.23 | |
| Share of homes detached | 70.0% | 50.3% | -28% |
| Long commuters, 45 min plus | 11.4% | 5.3% | -54% |
| Workers on their own account | 10.4% | 8.6% | -17% |
| Renters paying 30%+ of income | 44.8% | 49.2% | +10% |
| Units sitting vacant | 13.5% | 9.4% | -30% |
| Typical construction year | 1987 | 1997 | |
| Annual rent divided by value | 6.0% | 3.7% | -40% |
| Households that rent | 33.6% | 58.2% | +73% |
| Tax as a share of home value | 0.55% | 0.56% | +1% |
| Annual property tax bill, median | $1,040 | $1,946 | +87% |
| Household income, median | $60,773 | $62,695 | +3% |
| Typical owner-occupied value | $188,000 | $349,600 | +86% |
| Typical monthly rent | $947 | $1,065 | +12% |
| Residents (Census estimate) | 3,049,391 | 99,319 |
The renter share in Fayetteville is 58.2%, well above the Arkansas median of 34%, so the rental market is large and competitive. The median household brings in $62,695 (close to the Arkansas median of $60,773), with 49% of renters paying 30 percent or more of income toward rent.
The kind of housing in Fayetteville
Apartments and small buildings carry real weight in Fayetteville, about 43% of units, with duplexes through fourplexes at 8%. With a median build year of 1997, newer houses and townhomes set the tone, and homeowner association rules matter more than deferred maintenance.
Fayetteville reports 9% of units vacant and a rental vacancy rate of 4.0%, a measure of how quickly a listed unit might lease.
Investor takeaways for Fayetteville
At 3.7% gross, Fayetteville is a tight market for DSCR math, and investors often turn to interest-only structures, higher rents on renovated units or small multifamily to make the ratio clear. Median build year 1997 means many properties still have original systems under warranty or well within their lives. Renter-heavy markets like Fayetteville favor investors with a clear tenant profile, whether workers, students or families.
Insurance, tax and flood context for Fayetteville
In Fayetteville the median tax bill for an owner-occupied home is $1,946, or about 0.56% of value (Arkansas overall: 0.55%). That bill is well above the Arkansas median of $1,040. Measured against a year of median rent, taxes eat about 15% before any other cost shows up.
Washington County carries a relatively moderate overall rating in FEMA's National Risk Index, where ice storms (very high), winter weather (very high) and heat waves (relatively high) rank highest.
| Hazard in Washington County, FEMA index | Level |
|---|---|
| Tornadoes exposure | Relatively High |
| Heat waves exposure | Relatively High |
| Winter weather exposure | Very High |
| Ice storms exposure | Very High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Insurance belongs in the ratio from day one, so get a landlord quote for the Fayetteville address and ask about roof age, wind or hail deductibles and flood cover.
The ratio in Fayetteville dollars
Try the math at the medians. With rent at $1,065 and taxes near $162 a month, a 1.00 DSCR leaves $903 for everything else in the payment, a 1.20 ratio leaves $725, and a 1.25 ratio leaves $690. Any real property will differ, but the exercise shows how little room insurance and dues can take.
Rules a Fayetteville landlord should check
Local rental rules in Fayetteville are not summarized here because we could not verify them from a city source. Ask the city and Washington County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. Guests who book by the night in Fayetteville are taxed under state law as follows. 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.
Plan for a 60 day return window on any Fayetteville deposit once the tenant moves out.
Where Fayetteville sits among nearby places
Set Fayetteville ($349,600 median value) beside its neighbors: Siloam Springs comes in lowest at $221,700, and Bentonville tops the group at $428,500.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Siloam Springs | 41% | $1,393 | $221,700 | 18,699 | $1,003 |
| Bentonville | 50% | $2,871 | $428,500 | 58,249 | $1,344 |
| Rogers | 43% | $1,565 | $308,200 | 72,981 | $1,270 |
| Springdale | 47% | $1,430 | $261,800 | 88,160 | $1,071 |
| Fayetteville | 58% | $1,946 | $349,600 | 99,319 | $1,065 |
Workforce and demand drivers in Fayetteville
About 8.6% of Fayetteville workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. On the workforce side, government workers are about 14% of employment, 49% of adults hold a bachelor's degree or higher and 5% of commuters travel 45 minutes or more.
For a sense of who employs Fayetteville renters, the published employer list shows University of Arkansas, Washington Regional Medical Center, Walmart, Fayetteville School District and Veterans Administration Medical. Check the current year before you lean on it, since payrolls move. University of Arkansas, National Space Grant College and Fellowship Program, University of Arkansas System and Dale Bumpers College of Agricultural, Food and Life Sciences are the named colleges for the Fayetteville area, a source of steady tenants but also of a lease cycle that follows the academic calendar. Wikipedia's entry for Fayetteville notes interstate access via I-49 and air service through Northwest Arkansas National Airport, a practical point for tenants and owners alike.
Putting a Fayetteville file together
A good Fayetteville file has four pieces: rent evidence, a tax estimate, an insurance quote and cash. Preview the ratio in the calculator, then apply or talk to us.
More Arkansas markets
- All Arkansas DSCR loans
- DSCR loans in Springdale, AR
- DSCR loans in Rogers, AR
- DSCR loans in Bentonville, AR
- DSCR loans in Siloam Springs, AR
- Every market we cover
Sources
- U.S. Census Bureau data for Fayetteville
- Federal hazard index, AR
- Fayetteville on Wikipedia
- Fayetteville landlords: see Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306
- State rule cited for Fayetteville hosts: Arkansas DFA, sales and use tax rates
We took the Fayetteville data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Arkansas sections. Facts were checked in October 2026, and rules change.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent number goes into a Fayetteville, AR DSCR calculation?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Fayetteville median rent is $1,065.
How do taxes and insurance affect a DSCR loan in Fayetteville?
They do. Rent of $1,065 divided by 1.25 gives about $852 as the payment ceiling, and $162 of that is spoken for by the median Fayetteville tax bill.
What do Fayetteville owners pay in real estate taxes?
The Census reports a median of $1,946 a year for Fayetteville owners, about 0.56% of median value against 0.55% for Arkansas. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
Will a lender count nightly rental income at a Fayetteville property?
It depends on the program and on local law. A Fayetteville owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
When must a Fayetteville landlord return a deposit?
Return is due within 60 days after the tenant leaves. The governing section is Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306.
Does hazard risk affect a Fayetteville DSCR loan?
Overall risk is rated relatively moderate for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Can I close a Fayetteville DSCR loan in an LLC?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Arkansas attorney can advise on structure.