Rent vs buy in Little Rock, AR
In Little Rock, Arkansas, typical rent runs $1,184 /mo, with typical home value $219,657.
Over 7 years, renting wins by $15k
Based on Little Rock's typical home value and rent, a 20% down payment and today's mortgage rate. The break-even point: year 12.
Clearly labelled opinion, with the math shown. These are estimates, not quotes. If you change a number, the stamp changes.
- Renting leads by
- $15k after 7 years
- Break-even point
- Year 12 when owning catches up
- Real cost of owning
- $1,969 per month year 1, against $1,184 rent
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Is it cheaper to rent or buy in Little Rock?
Across 7 years, renting costs $15,331 less, counting the money you get back when you sell. For the first 11 years, renting costs less. In year 12, owning catches up.
Rent. Home ownership. Net cost to date, by year.
Average rent compared with mortgage payment in Little Rock
Rent and mortgage payments don't tell the whole story. Here are all monthly costs for year 1 at Little Rock's usual price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,184 | All of it, every month |
| Mortgage payment | $1,198 | $1,056 of it is interest in year 1 |
| Property tax | $146 | 0.8% of the value a year |
| Insurance | $135 | Census median for the city |
| Upkeep | $183 | 1% of the value a year |
| Owning, cash out | $1,662 | $142 of it builds equity |
| Lost return on the down payment | $357 | What the cash would earn yearly at 8.3% |
| Buying costs, spread out | $92 | 3.5% of the price over 7 years |
| True cost of owning | $1,969 | Cash paid out, minus the equity portion, plus both lines above |
Little Rock's verdict and the numbers behind it
- Typical home value Zillow data: ZHVI, September 2026
- $219,657
- Typical rent Zillow data: ZORI, September 2026
- $1,184 per month
- Down payment: 20% avoids private mortgage insurance, which the engine leaves out of its calculations.
- 20%
- Mortgage rate Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US) data
- 7.24%
- Home price growth FHFA house price index, Arkansas, 1995 to 2025 data
- 3.8% each year
- Rent increases: CPI rent of primary residence, growth each year 2006 to 2026
- 3.5% yearly
- Savings return: 60% in the S&P 500 with dividends, combined with 40% in 10-year Treasuries, yearly rebalancing, 1928 to 2025
- 8.3% yearly
- Property taxSource: Census ACS 2020-2024, Little Rock
- 0.8% of the value
- Home insuranceSource: Census ACS 2020-2024, Little Rock
- $135 per month
- MaintenanceFannie Mae, lower end of 1% to 4%
- 1% of the value each year
- Buying costsFreddie Mac, midpoint of 2% to 5%
- 3.5% of the price
- Selling costsAgent commission and closing costs
- 6% of the price
What would change the result in Little Rock?
Each line marks the point where the 7-year verdict for Little Rock changes, and everything else stays as it is.
Renting comes out ahead when
- Home prices rise by less than 4.7% a year; our figure is Arkansas's long-run rate of 3.8%.
- The mortgage rate remains above 6.00%.
- Monthly rent for a similar home is under $1,350 (typical here: $1,184).
- You make the move before year 12.
Buying comes out ahead when
- Home prices rise by more than 4.7% a year.
- You lock in a mortgage rate under 6.00% (today's is 7.24%).
- For that same home, monthly rent would cost you over $1,350.
- Staying 12 years or longer.
How Little Rock compares with the other 812 cities
| Measure | Little Rock | Median city |
|---|---|---|
| Typical home value | $219,657 | $422,451 |
| Typical rent | $1,184 /mo | $1,837 /mo |
| Price-to-rent ratio | 15.5 (#598 of 813) | 18.5 |
| Home prices, last 10 years | 3.6% a year | 6.2% a year |
| Rents, last 5 years | 3.3% a year | 4% a year |
| Property tax | 0.80% | 0.87% |
| Households that rent | 46% | 42% |
Sources: Zillow data: ZHVI and ZORI, Census ACS 2020-2024.
Other Arkansas cities
- Rent. Fayetteville, AR: rent wins by $54k.
- Rent. Bentonville, AR: rent wins by $109k.