1st Advantage MortgageA DSCR loan in Fort Smith turns on rent versus payment. Citywide medians from the Census are $884 a month for rent, $178,100 for home value and $1,137 a year for real estate taxes.
Market snapshot for Fort Smith
Median gross rent in Fort Smith: $884, close to the Arkansas median of $947. Median owner-occupied home value: $178,100, close to the Arkansas median of $188,000. Those are citywide medians, so an individual address can sit well on either side of them. The gross rent-to-value ratio for Fort Smith works out to 6.0% (twelve months of median rent divided by median value), a middle-of-the-road gross ratio. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Arkansas | Fort Smith | Difference |
|---|---|---|---|
| Annual property tax bill, median | $1,040 | $1,137 | +9% |
| Household income, median | $60,773 | $54,816 | -10% |
| Typical owner-occupied value | $188,000 | $178,100 | -5% |
| Typical monthly rent | $947 | $884 | -7% |
| Persons per household | 2.46 | 2.40 | |
| Share in 2-4 unit buildings | 6.5% | 13.8% | +113% |
| Share of homes detached | 70.0% | 66.2% | -5% |
| Long commuters, 45 min plus | 11.4% | 4.4% | -61% |
| Degree holders, age 25+ | 25.7% | 23.9% | -7% |
| Renters paying 30%+ of income | 44.8% | 42.1% | -6% |
| Units sitting vacant | 13.5% | 9.1% | -32% |
| Annual rent divided by value | 6.0% | 6.0% | -1% |
| Households that rent | 33.6% | 46.6% | +39% |
| Tax as a share of home value | 0.55% | 0.64% | +15% |
| Residents (Census estimate) | 3,049,391 | 89,805 |
The renter share is 46.6% in Fort Smith, well above the Arkansas median of 34%, a sizable rental market. Against a median household income of $54,816 (about 10% below the Arkansas median of $60,773), 42% of renters report rent at or above 30 percent of income.
Housing mix and age in Fort Smith
Fort Smith is dominated by detached homes (66% of units), which keeps most rental income tied to house comparables and puts maintenance squarely on the owner. The median structure went up in 1977, so request ages for the roof, HVAC and water heater on any rental you consider.
About 9% of Fort Smith's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 6.8%.
Underwriting angles in Fort Smith
With a gross ratio near 6.0%, Fort Smith rewards buyers who negotiate price and shop insurance, because the margin above the lender's threshold is not wide. A median build year of 1977 suggests moderate repair budgets with the usual replacement cycles. A 47% renter share is large enough to keep units leased, so location relative to jobs and schools drives rent more than the market as a whole.
Carrying costs in Fort Smith
Real estate taxes are a line the rent has to cover. The median owner in Fort Smith pays $1,137 a year (about 9% above the Arkansas median of $1,040), which is about 0.64% of the median home value. At the median rent that tax bill takes roughly 11% of a year's rent before insurance, dues or interest.
County-level hazard data from FEMA (National Risk Index 1.20) shows Sebastian County with relatively moderate overall risk and ice storms (very high), tornadoes (relatively high) and lightning (relatively high) at the top of the list.
| Hazard in Sebastian County, FEMA index | Level |
|---|---|
| Winter weather exposure | Relatively High |
| Lightning exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Ice storms exposure | Very High |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Price the insurance before you price the offer: a landlord quote for the Fort Smith property, plus flood cover where the map requires it, goes into the payment your rent is divided against.
A worked DSCR test for Fort Smith
Worked through with this city's own medians: rent of $884 against taxes of about $95 a month leaves $789 for principal, interest, insurance and dues at a 1.00 ratio, and $612 at a 1.25 ratio. That arithmetic is the whole game, and the real rent and quotes for your address replace these medians.
What AR law and Fort Smith require of landlords
Before you underwrite a Fort Smith rental, confirm with city hall and Sebastian County whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. On lodging taxes, a Fort Smith host should read this first. 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.
Arkansas gives a landlord 60 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist.
Fort Smith next to nearby cities
Among the nearby markets above, Siloam Springs has the lowest median home value at $221,700 and Fayetteville the highest at $349,600, against $178,100 in Fort Smith.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Springdale | 47% | $1,430 | $261,800 | 88,160 | $1,071 |
| Siloam Springs | 41% | $1,393 | $221,700 | 18,699 | $1,003 |
| Fayetteville | 58% | $1,946 | $349,600 | 99,319 | $1,065 |
| Fort Smith | 47% | $1,137 | $178,100 | 89,805 | $884 |
The renter base in Fort Smith
9.9% of employed residents work for themselves, which matters here because DSCR lending does not ask for tax returns or pay stubs. Three more data points: government workers are about 12% of employment, 24% of adults hold a bachelor's degree or higher and 4% of commuters travel 45 minutes or more.
Wikipedia's employer table for Fort Smith for 2024 names Mercy-Fort Smith, Fort Smith Public Schools, ArcBest, OK Foods and Baptist Health (formerly Sparks Health) among the largest employers, a useful starting point for judging how steady renter demand is. The Fort Smith area is home to University of Arkansas System, University of Arkansas - Fort Smith, University of Arkansas and University of Arkansas at Fort Smith. Students and employees at schools like these are a recurring source of rental demand. On the logistics side, interstate access via I-49 and air service through Fort Smith Regional Airport and Dallas/Fort Worth International Airport are noted for Fort Smith.
Moving from numbers to a Fort Smith loan
Before you offer on a Fort Smith property, test the ratio in the calculator, then apply now or request a DSCR quote.
More Arkansas markets
- All Arkansas DSCR loans
- DSCR loans in Fayetteville, AR
- DSCR loans in Siloam Springs, AR
- DSCR loans in Springdale, AR
- Every market we cover
Source links
- FEMA risk data used for Fort Smith
- Wikipedia article, Fort Smith, Arkansas
- Text of Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306 for Fort Smith landlords
- Lodging tax reference: Arkansas DFA, sales and use tax rates
- Census ACS profile behind the Fort Smith figures
All Fort Smith statistics are ACS five-year survey estimates from 2020 to 2024. Landlord rules for Fort Smith rest on Arkansas statutes and the CC BY 4.0 RedFlagLease dataset. Checked October 2026; confirm with Fort Smith or the county before you rely on any rule.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Which rent counts when I finance a Fort Smith property?
A signed lease or the appraiser's rent schedule supplies the rent, depending on the program, and $884 is the Census median for Fort Smith renters, only a benchmark.
How much payment fits the median Fort Smith rent?
Taxes, insurance and dues are inside the payment the lender tests. Run $884 through a 1.25 ratio and the ceiling is about $707; subtract $95 for median taxes and $612 remains.
How high are property taxes in Fort Smith?
Fort Smith owners report a median $1,137 in annual real estate taxes, an effective 0.64% (Arkansas: 0.55%). Your own bill depends on the assessed value after purchase.
Can I use Airbnb income to qualify in Fort Smith?
Yes on programs built for it, once the use is lawful in Fort Smith. Gather twelve months of statements or a third-party projection, and have Arkansas tax registration squared away.
How much deposit can a Fort Smith landlord collect?
Under Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306: The deposit is due back within 60 days of move-out. Check the statute and your lease before collecting.
Is flood or storm risk a concern for a Fort Smith rental?
The county scores relatively moderate overall in FEMA's index, with ice storms leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Is an entity required for a AR DSCR loan?
Many Fort Smith investors do, though no rule forces it. The loan is secured by the property either way, and the lender will check who controls the company.