1st Advantage MortgageA DSCR loan in Siloam Springs turns on rent versus payment. Citywide medians from the Census are $1,003 a month for rent, $221,700 for home value and $1,393 a year for real estate taxes.
Siloam Springs by the Census numbers
The Census Bureau's 2020 to 2024 American Community Survey puts median gross rent in Siloam Springs at $1,003, close to the Arkansas median of $947. Median home value sits at $221,700, which is about 18% above the Arkansas median of $188,000. A quick screen: twelve months of Siloam Springs median rent over its median home value equals 5.4%, a thin gross ratio, which tells you purchase prices are high relative to rent. Use it to compare markets, then replace it with real rent evidence for the address.
| Indicator | Arkansas | Siloam Springs | Difference |
|---|---|---|---|
| Persons per household | 2.46 | 2.73 | |
| Share in 2-4 unit buildings | 6.5% | 9.4% | +45% |
| Share of homes detached | 70.0% | 68.6% | -2% |
| Long commuters, 45 min plus | 11.4% | 17.3% | +52% |
| Degree holders, age 25+ | 25.7% | 27.5% | +7% |
| Workers on their own account | 10.4% | 8.1% | -22% |
| Renters paying 30%+ of income | 44.8% | 42.6% | -5% |
| Units sitting vacant | 13.5% | 6.6% | -51% |
| Typical construction year | 1987 | 1995 | |
| Annual rent divided by value | 6.0% | 5.4% | -10% |
| Households that rent | 33.6% | 40.9% | +22% |
| Tax as a share of home value | 0.55% | 0.63% | +14% |
| Annual property tax bill, median | $1,040 | $1,393 | +34% |
| Household income, median | $60,773 | $72,065 | +19% |
| Residents (Census estimate) | 3,049,391 | 18,699 |
About 40.9% of occupied homes in Siloam Springs are renter-occupied, about 22% above the Arkansas median of 34%, a balanced mix of owners and tenants. Against a median household income of $72,065 (about 19% above the Arkansas median of $60,773), 43% of renters report rent at or above 30 percent of income.
Property types and condition in Siloam Springs
Single-family detached housing accounts for 69% of the units counted in Siloam Springs, so expect house-style comparables in most appraisals. A median construction date of 1995 points to growth-era housing, where HOA leasing limits and new-build rent comparables are the bigger questions.
Siloam Springs reports 7% of units vacant and a rental vacancy rate of 1.8%, a measure of how quickly a listed unit might lease.
How investors should read Siloam Springs
A gross yield of 5.4% means Siloam Springs is a market where purchase prices run ahead of rent, so a 1.0 ratio generally takes a larger down payment or a property priced below the local median. Newer construction (median built 1995) lowers near-term repair risk, but association rules and builder-grade finishes can limit rent growth. A 41% 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.
Insurance, tax and flood context for Siloam Springs
Property taxes in Siloam Springs run a median $1,393 a year for owners, well above the Arkansas median of $1,040. As a share of median value, that is about 0.63%. In rent terms, the tax bill equals roughly 12% of twelve months of median rent.
County-level hazard data from FEMA (National Risk Index 1.20) shows Benton County with relatively moderate overall risk and ice storms (very high), winter weather (relatively high) and lightning (relatively high) at the top of the list.
| Hazard in Benton County, FEMA index | Level |
|---|---|
| Strong wind exposure | Relatively High |
| Lightning exposure | Relatively High |
| Winter weather 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 Siloam Springs exclusions before trusting a premium estimate.
A worked DSCR test for Siloam Springs
For a rough fit test, treat $1,003 as the rent and $116 as the monthly tax. The payment cannot exceed $1,003 at a 1.00 ratio, so $887 is left after taxes for interest, principal, insurance and any association dues, shrinking to $686 if the lender wants 1.25.
Rules a Siloam Springs landlord should check
This page does not claim to list every Siloam Springs rental ordinance. Before you buy, call the city's planning or code office and Benton County to ask about rental registration, inspections and short-term rental permits, and read any association declaration. Nightly stays carry state tax in Arkansas. 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 Siloam Springs deposit once the tenant moves out.
Neighbors of Siloam Springs by the numbers
Of the cities listed, Bentonville is the most expensive ($428,500 median value) and Springdale the least ($261,800); Siloam Springs sits at $221,700.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Rogers | 43% | $1,565 | $308,200 | 72,981 | $1,270 |
| Fayetteville | 58% | $1,946 | $349,600 | 99,319 | $1,065 |
| Springdale | 47% | $1,430 | $261,800 | 88,160 | $1,071 |
| Bentonville | 50% | $2,871 | $428,500 | 58,249 | $1,344 |
| Siloam Springs | 41% | $1,393 | $221,700 | 18,699 | $1,003 |
Employers and institutions near Siloam Springs rentals
Roughly 8.1% of employed people in Siloam Springs are self-employed, a base of investors and landlords for whom a rent-based loan is a practical option. Around the edges, government workers are about 9% of employment, 27% of adults hold a bachelor's degree or higher and 17% of commuters travel 45 minutes or more.
Campuses such as John Brown University pull tenants into Siloam Springs, and landlords near them can plan around move-in seasons. Wikipedia's entry for Siloam Springs notes air service through Northwest Arkansas Regional Airport, a practical point for tenants and owners alike.
Taking a Siloam Springs deal to a lender
Ready to test a Siloam Springs deal? Use the calculator for the ratio, then start your application or send us the scenario.
More Arkansas markets
- All Arkansas DSCR loans
- DSCR loans in Bentonville, AR
- DSCR loans in Springdale, AR
- DSCR loans in Fayetteville, AR
- DSCR loans in Rogers, AR
- Every market we cover
Sources and data notes
- Wikipedia article, Siloam Springs, Arkansas
- Siloam Springs landlords: see Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306
- Arkansas DFA, sales and use tax rates (Arkansas)
- American Community Survey tables, Arkansas
- FEMA hazard ratings for Benton County
Census figures are 2020 to 2024 ACS five-year estimates for Siloam Springs and carry margins of error. For Arkansas tenant law we used RedFlagLease under CC BY 4.0 plus the linked statutes. Reviewed in October 2026, with no promise that rules have stayed put.
Pre-offer checklist
Ask the seller for twelve months of utility bills and any lease on the Siloam Springs property, confirm who pays water, trash and lawn care, and get the insurance quote before the inspection period ends so the ratio is tested on real numbers.
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 Siloam Springs property?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Siloam Springs median rent is $1,003.
How much payment fits the median Siloam Springs rent?
They do. Rent of $1,003 divided by 1.25 gives about $802 as the payment ceiling, and $116 of that is spoken for by the median Siloam Springs tax bill.
What do Siloam Springs owners pay in real estate taxes?
About $1,393 a year at the median, which is 0.63% 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 I use Airbnb income to qualify in Siloam Springs?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Siloam Springs and any HOA permit stays under 30 days, and that you can register for Arkansas lodging tax.
What are the security deposit rules for a Arkansas landlord?
Landlords in Siloam Springs follow Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306. Return deadline: 60 days from move-out.
Is flood or storm risk a concern for a Siloam Springs rental?
FEMA's National Risk Index rates the county's overall natural hazard risk as relatively moderate. That is a county-level view, so check the FEMA flood map and an insurance quote for the exact Siloam Springs address.
How do LLC closings work for Siloam Springs rentals?
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.