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.
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
Originally featured on NWALook.com