Is it a good time to own rental properties in Northwest Arkansas, and if so, where might be the best location? When considering the question, it is essential to consider these key factors: affordability, population growth, and inventory levels. Let's take an NWA Look at the data to determine if a rental property may be a sound investment.
The rental market in Benton County had 2,067 leased properties y-t-d in 2023 and increased to 2,417 leased properties in 2024, that’s a 38% increase. Washington County went from 1400 leased properties in 2023 to 1372 in 2024, that’s a 2% decrease.
The Northwest Arkansas rental market as a whole increased by 12.4% from 2023 to 2024 and increased by 45% from 2019 to 2024.
Market Dynamics by County: Rents and Leasing in 2023 vs. 2024
Benton County
The average rent in Benton County in 2023 y-t-d was $1,600 per month, with an average of 27 days on the market. Benton County saw a decrease in day on market 23 dom, and an increase in the average rent of $1,650 per month in 2024 which is an additional $600 annually. The rise in rent, combined with the decrease in days on the market, suggests that Benton County's rental market remains strong and responsive to demand growth. This is primarily due to 65% of people moving to Benton County.
Washington County
In regards to Washington County, we saw a little different picture. We were surprised that the number of homes leased decreased by 2%, from 1400 leased properties to 1372. The average rental amount was $1500 in 2023, and in 2024, the rental amount increased to $1575 per month. While Washington County saw a decrease in the number of leased properties, there was a more significant increase for renters by an additional $900 per year. The increased competition is due to the lack of inventory and the booming student population as the new enrollment figures continue to increase annually.
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Current Rental Listings and Vacancy Rates
We currently have 594 active listings across Northwest Arkansas, Benton County has 383 active, and Washington County has 211 active rental properties. We broke it down into two major cities within Northwest Arkansas, and here is what we found. Fayetteville has 149 active listings, averaging 45 days on the market. Meanwhile, Bentonville has 158 active listings with an average of 22 days on the market. While Fayetteville has a longer day on the market, it could reflect the time of year, as most students' leases start in either August or January. Bentonville rentals tend to be in demand year-round.
Market Insights and Projections
The Northwest Arkansas rental market will likely continue to increase in demand due to an expanding population and a lack of housing supply. However, there are slight differences in saturation and turnover rates between Benton and Washington Counties. Bentonville is currently a more competitive market, with fewer days on the market and higher demand.
As 2025 approaches, investors should anticipate continued upward pressure on rents, particularly in Benton County, where rental saturation is low and demand remains high. Meanwhile, Fayetteville and Washington County may still have high demand, and the vacancy rates may remain slightly higher than in Benton County. NWALook will continue to monitor the market fluctuations. If you need a local real estate professional, reach out to Desiree Stock, Executive Broker, Collier and Associates.
Data used was from Jan 1 - Oct 31 of each year referenced.
Desiree Stock
(479) 409-4241
Executive Broker
Collier and Associates
NWA Real Estate Market Update
Arkansas Home Prices Rise Slower than National Average
Over the past 40 years, Arkansas home prices have risen 275%, well below the national average of 500%. While the state remains more affordable than many U.S. areas, housing costs in Northwest Arkansas are growing faster than wages, making affordability a key concern. Nearly 42% of households struggle financially, and many workers earn under $17 per hour. Housing projects, including those for teachers and workforce housing in Springdale, aim to address the issue. Recent interest rate cuts may spur real estate activity but won't significantly improve affordability for most residents.
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This article is provided for informational purposes only and is not intended as professional advice. The information contained herein is based on sources and information deemed reliable but is not guaranteed to be accurate, complete, or applicable to every situation. NWALook and any associated parties assume no liability for any errors or omissions in the content of this article or any actions taken based on the information provided. By reading this article, you agree to hold NWALook and any affiliates harmless from any and all claims, liabilities, or damages arising from or related to your use of the information provided.
New Business Licenses
Rudy's "Country Store" and Bar-B-Q is coming soon to Fayetteville! Located at 4048 W Martin Luther King Jr. Blvd, Rudy's brings the authentic taste of Texas Hill Country BBQ to Northwest Arkansas.
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