Arkansas investors search for DSCR loans more than for hard money, and the state rewards landlords with some of the lowest property taxes in the South. But Arkansas's two main markets run on different logic. In Northwest Arkansas, a flip competes with homebuilders offering buyers incentives and rate buy-downs. In Little Rock and the rest of the state, the question is whether the after-repair value is high enough to carry the loan. Here is how to underwrite both.
How Arkansas taxes a rental
Arkansas assesses all real property at 20 percent of its market value, a ratio set in the state constitution, and the local millage is applied to that. Amendment 79 then limits how fast the taxable value can climb after a county reappraisal: 5 percent a year for a homestead and 10 percent a year for everything else, including rentals, until the value catches up with the new appraisal. The limits do not apply to new construction or substantial improvements.
The homeowner's advantages don't pass to an investor. The Amendment 79 homestead tax credit, $600 a year and raised to $675 by legislation passed in the April 2026 fiscal session, requires the owner to live in the home as a principal residence. A rental gets the 10 percent cap instead of the 5 percent one, and no credit. A heavy renovation can also count as a substantial improvement, which lets the assessor add value outside the cap. Before closing, ask the county assessor how the property will be assessed once you own it, rather than relying on the seller's bill.
Arkansas also charges a real property transfer tax of $3.30 per $1,000 of the price when a deed is recorded. On a flip, that belongs in the closing budget on both ends of the deal.
Northwest Arkansas: a flip competes with the builders
Bentonville, Rogers, Springdale and Fayetteville are the state's fastest-growing investor market, and prices reflect it. The Skyline Report for the first half of 2026 put the average sale price at $465,888 in Benton County, down 1.2 percent, and $423,750 in Washington County, up 1.5 percent. The same report described a buyer's market.
The reason matters to a flipper. Large homebuilders have been offering incentives and mortgage rate buy-downs to move new houses, and new construction made up a large share of recent sales. A renovated 1990s house in Rogers is competing against a brand-new one down the road with a lower effective interest rate for the buyer. Price the after-repair value against those new-build deals, not just against other resales, and budget a longer sale than the region's boom years would suggest.
For buy-and-hold investors, the same growth is the opportunity. Employment around the region's large employers keeps rental demand steady, which is where a DSCR loan does its work.
Little Rock, Fort Smith and the rest of the state
Central Arkansas, around Little Rock, North Little Rock, Conway and Benton, is the state's other large market, with far lower prices than the northwest. That makes the after-repair value the first thing to check. A short-term loan is capped at 70 percent of the renovated value, so on a low-priced house the loan may not cover the purchase and the work, however cheap the purchase looks. Fort Smith and Jonesboro deals depend heavily on how many recent renovated sales an appraiser can find, and in much of rural Arkansas there are too few to support a value. Send the address early and the lender will say whether it fits.
Arkansas has long been known as one of the most landlord-friendly states. Act 1052 of 2021 gave it its first statewide minimum habitability standards for leases signed or renewed after November 1, 2021: hot and cold running water, electricity, drinkable water, sanitary sewer and plumbing, a functioning roof and building envelope, and working heat and air conditioning where the home had them. Budget a rental renovation to meet them from the start.
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DSCR loans in Arkansas
A DSCR loan qualifies the property rather than your personal income: the rent must cover the payment, including principal, interest, taxes and insurance. Our lending partners' DSCR rental program has no minimum credit score, lends from $75,000 to $2 million, and goes up to 80 percent of value on a purchase or rate-and-term refinance. The rate depends on the rent coverage and the rest of the file, and the lender sets it.
Arkansas is friendly territory for this loan. With property assessed at 20 percent of value and increases capped at 10 percent a year on rentals, the tax line is modest and predictable. The number to watch is insurance, since central and northwest Arkansas both see severe storms and hail, so get a quote with the wind and hail deductible spelled out before you count on the coverage ratio.
Fix and flip loans in Arkansas: how the loan gets sized
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. For fix-and-flip, rehab and bridge loans, standard pricing starts at 12.99 percent plus 2.99 points. Borrowers who have paid off two loans with the lending partner in good standing can qualify for loyalty pricing of 10.99 percent plus 1.99 points.
The programs lend up to 70 percent of the after-repair value and up to 100 percent of cost (purchase plus renovation), whichever limit is reached first, with a minimum loan of $50,000 and a minimum credit score of 600. Leverage depends on the projects you can document over the past three years. The property must be non-owner-occupied and held in an LLC or corporation. Term and renovation-budget limits are set deal by deal, so confirm them with the lender before you commit.
A Springdale example: a house worth $320,000 after renovation supports up to $224,000 at 70 percent. If purchase and renovation cost $240,000 together, the after-repair limit binds and the investor brings about $16,000 plus closing costs, the transfer tax and cash to carry the loan.
Arkansas pre-offer checklist
1. In Northwest Arkansas, price against new construction. Builders' incentives set the bar your flip has to beat.
2. Check the after-repair value carries the loan, and that there are enough recent renovated sales nearby to support it.
3. Ask the assessor how the property will be assessed after you buy. No homestead credit, a 10 percent cap, and possible reassessment after a big renovation.
4. Add the transfer tax on the purchase and on the sale.
5. Get an insurance quote with the wind and hail deductible spelled out.
6. Get written contractor bids and add at least ten percent for surprises.
7. For a rental, meet the habitability standards in the renovation budget, and check the rent covers a DSCR payment.
What gets an Arkansas deal declined
An after-repair value too thin to carry the loan. Common outside the two main metros.
No comparable sales to support the value. A rural property with no recent renovated sales nearby is hard to appraise.
An ARV that ignores new-construction competition in Northwest Arkansas.
A large renovation on your first deal with no track record behind the budget.
A house for a parent or grown child. A property you or a close family member will live in is owner-occupied, and our lending partners finance non-owner-occupied investment property only.
Want the long version? Two free landlord books cover what a rental really costs to hold and what the new federal housing law actually changed.
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Questions investors ask
Can I get a DSCR loan on an Arkansas rental?
Yes. Our lending partners' DSCR program lends from $75,000 to $2 million, up to 80 percent of value on a purchase, with no minimum credit score. Arkansas's 20 percent assessment ratio and capped increases keep the tax side of the calculation predictable.
What do hard money lenders charge in Arkansas?
Our lending partners' fix-and-flip pricing starts at 12.99 percent plus 2.99 points. Loyalty pricing of 10.99 percent plus 1.99 points can apply after two loans are paid off in good standing. The transfer tax, appraisal, title and closing costs are separate, and the lender sets the final terms.
Can I get a flip loan in Bentonville, Rogers or Little Rock?
Yes. Investors send deals from Bentonville, Rogers, Springdale, Fayetteville, Little Rock, North Little Rock and Conway. Each deal is sized on its after-repair value and cost, and the lender decides.
Does my Arkansas rental get the homestead tax credit?
No. The Amendment 79 homestead credit and the 5 percent cap are for an owner's principal residence. A rental gets the 10 percent cap on reappraisal increases and no credit, and a substantial renovation can be assessed outside the cap.
Who pays the Arkansas transfer tax on a flip?
The tax is $3.30 per $1,000 of the price and is collected when the deed is recorded. Who pays is negotiable in the contract, so put it in the budget on the purchase and again on the sale.
Are private money lenders different from hard money lenders in Arkansas?
In practice they are the same thing: short-term, asset-based loans from non-bank lenders, secured by investment property. Whether you searched for a private money lender or a hard money lender, the same program terms apply.
Sources
- Arkansas Department of Finance and Administration, property tax relief, the Amendment 79 homestead credit and the 5 and 10 percent reappraisal caps (accessed Oct 2026)
- Arkansas Advocate, Legislature passes budget and homestead tax credit increase, the credit rising from $600 to $675 (accessed Oct 2026)
- University of Arkansas Cooperative Extension, Arkansas property tax, 20 percent assessment ratio and Amendment 79 limits (accessed Oct 2026)
- Arkansas DFA, real property transfer tax, $3.30 per $1,000 of consideration (accessed Oct 2026)
- Talk Business and Politics, Skyline Report: Northwest Arkansas a buyer's market, first-half 2026 average prices in Benton and Washington counties (accessed Oct 2026)
- Mitchell Williams, Act 1052: an update to landlord tenant law in Arkansas, the 2021 minimum habitability standards (accessed Oct 2026)
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.