DSCR Loans in Arkansas

Investment property loans that qualify on rent.

A Arkansas DSCR loan is a rental property mortgage sized on the rent, with no personal income documents. HUD puts the 2 bedroom Fair Market Rent for the Little Rock metro at $1,121 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Arkansas up to $5 million.

Facts checked November 1, 2026. Not a commitment to lend.

Facts checked November 1, 2026

The Arkansas numbers that shape a DSCR deal

Pulled from state statutes, state agencies, the Census Bureau and FRED. Each row links to its source.

Arkansas factValueSource
Security instrumentMortgages and deeds of trust both used; Statutory Foreclosure Act allows nonjudicial foreclosureArk. Code § 18-50-102
ForeclosureMortgages and deeds of trust both used; Statutory Foreclosure Act allows nonjudicial foreclosureArk. Code § 18-50-102
Transfer and recording taxes$1.10 per $1,000 plus an additional $2.20 per $1,000, total $3.30 per $1,000 of considerationArk. Code § 26-60-105
Security deposit2 months' periodic rentlaw.justia.com
Notice for unpaid rent3 days' written notice to quit and demand for possession (unlawful detainer)Ark. Code § 18-60-304(3)
Rent controlPreemptedlaw.justia.com
LLC formation fee$45 online, $50 paper (Certificate of Organization, Form LL-01)sos.arkansas.gov
Median listing price$318,743 in September 2026 ($304,950 in September 2025)Realtor.com via FRED
HUD 2 bedroom Fair Market Rent$1,121, The Little Rock metroHUD User
The definition

How a DSCR loan works in Arkansas

DSCR is monthly rent divided by PITIA (principal, interest, taxes, insurance and HOA). Take the HUD 2 bedroom Fair Market Rent for the Little Rock metro, $1,121: that rent carries a $1,121 payment at 1.00, or $2,242 at 0.50.

Full walk through: how DSCR is calculated.

Where PMG is different

Why Arkansas investors use PMG

What PMG can place for a Arkansas rental, in short.

  • First time buyers: allowed, no VOR
  • Cash out: no seasoning
  • Reserves: none under $1M, 75% LTV
  • Assets: no sourcing
  • Gift funds: 100%
  • ADUs: multiple
  • Foreign nationals: 70% / 60% LTV
  • DSCR: from 0.50
  • Interest only: 70% / 65% LTV

Loan amount

Up to $5M

Credit

660 and up

Down

20 to 25%

Vesting

LLC ok

Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.

Arkansas rental market

What Arkansas rentals rent and sell for

Rent is the number that qualifies a DSCR loan, so start with what Arkansas rentals actually command.

HUD Fair Market Rent, 2 bedroom

$1,121

The Little Rock metro (FY2027)

HUD User

HUD Fair Market Rent, 2 bedroom

$1,256

The Fayetteville metro (FY2027)

HUD User

Median listing price

$318,743

September 2026, up 4.5% from $304,950 in September 2025

Realtor.com via FRED

Quick math (computed from the figures above): At the Arkansas median listing price of $318,743, 25% down is $79,686 and the loan is $239,057. A year of rent at the Fair Market Rent for the Little Rock metro ($1,121) is $13,452, or 4.2% of that price. A year of rent at the Fair Market Rent for the Fayetteville metro ($1,256) is $15,072, or 4.7% of that price.

Fair Market Rent is a HUD benchmark, not an appraisal.

Calculator

Check your Arkansas DSCR in seconds

The rent field starts at the HUD 2 bedroom Fair Market Rent for the Little Rock metro. HUD also lists the Little Rock metro at $1,121 and the Fayetteville metro at $1,256. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Arkansas listing was $318,743 in September 2026.

Arkansas DSCR Calculator

See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.

Income
Example: HUD 2 bedroom Fair Market Rent for the Little Rock metro. Replace it with your rent.
Loan
Expenses
Leave blank if there is no HOA.

Your DSCR results

Enter rent, price and your quoted rate to see your DSCR.

Formula used

Loan amount (L) = Price × (100 minus Down %) ÷ 100

P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12

P&I (40 year interest only) = L × r

PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA

DSCR = Monthly rent ÷ PITIA

Rent needed for a target DSCR = Target × PITIA

Talk through your numbers with us

Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.

The math

DSCR worked examples for Arkansas

Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Arkansas rents. Not a quote or a rate.

The Little Rock metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,121
Hypothetical PITIA
$1,775

0.63DSCR

$1,121 / $1,775 = 0.63: fits programs down to 0.50.

The Fayetteville metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,256
Hypothetical PITIA
$1,775

0.71DSCR

$1,256 / $1,775 = 0.71: fits programs down to 0.50.

Talk to us

Have a Arkansas rental in mind? Run it with us.

Share the deal and we will run the ratio, compare lenders and lay out your options in plain numbers.

Investors from any state can buy in Arkansas.

See If My Arkansas Deal Qualifies

No commitment  ·  Under 2 minutes

Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

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We will reach out shortly to run your numbers.

Top markets

Top Arkansas rental markets for DSCR

Most Arkansas DSCR deals land in these markets. Check the city rules before you buy.

Little Rock

$1,121

HUD 2 bedroom Fair Market Rent, the Little Rock metro (HUD)

Short term rental rules in Little rock

  • Little rock: City document states the 2023 STR ordinance caps STRs at 500 within city limits. Non owner occupied STRs in residential zones have required zoning approval (example: rezoning to PD-C). Confirm current permit path with the city. (littlerock.gov)

City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.

Landlord and tenant law

Arkansas landlord tenant rules investors should know

Know the Arkansas landlord rules before you close. They shape your lease, your deposit and how fast you can act on unpaid rent.

TopicThe ruleCitation
Security deposit cap2 months' periodic rentlaw.justia.com
Deposit return deadline60 days after termination of tenancyArk. Code § 18-16-305(a)(1)
Small landlord exemptionDeposit subchapter does not apply to individuals who with family and related entities own 5 or fewer units, unless managed for a fee by a third party.Ark. Code § 18-16-303
Nonpayment notice3 days' written notice to quit and demand for possession (unlawful detainer)Ark. Code § 18-60-304(3)
Month to month notice30 days' written notice before the termination dateArk. Code § 18-17-704(b)
Rent controlPreempted. A local governmental unit may not enact, maintain or enforce an ordinance or resolution controlling the amount of rent, rental application fees or rental deposits for private residential or commercial property.law.justia.com

Not legal advice.

Property taxes

Property tax on a Arkansas investment property

Every dollar of tax raises the payment the rent has to cover. Here is how Arkansas assesses and taxes property.

  • Assessment: Amendment 79 caps annual growth in taxable value: homestead 5% per year, all other parcels (including rentals) 10% per year, except new construction and substantial improvements. Homestead credit up to $500 per year, rising to up to $600 starting with 2026 bills. (dfa.arkansas.gov)
Closing and foreclosure

Arkansas closing and foreclosure basics for investors

Who closes your loan, which security instrument you sign and what the state charges to record it.

  • Security instrument: Mortgages and deeds of trust both used. Statutory Foreclosure Act allows nonjudicial foreclosure. Authorized foreclosing parties limited to an Arkansas bar member trustee or attorney in fact with an in state office, or qualifying lenders/servicers with an Arkansas location. Ark. Code § 18-50-102 (law.justia.com)
  • Transfer taxes: $1.10 per $1,000 plus an additional $2.20 per $1,000, total $3.30 per $1,000 of consideration Ark. Code § 26-60-105 (law.justia.com)
LLC and vesting

Arkansas LLC costs and vesting

What it costs to form and keep an LLC in good standing with the Arkansas Secretary of State.

  • Formation fee: $45 online, $50 paper (Certificate of Organization, Form LL-01) (sos.arkansas.gov)
  • Annual fee: $150 annual franchise tax for every LLC, report due May 1 (late penalty $25 plus interest) (sos.arkansas.gov)
Local angle

What makes Arkansas different for rental investors

  • Northwest Arkansas is home to the headquarters of Walmart, Tyson Foods and J.B. Hunt, which draws corporate relocations and vendor staff into the rental market.
  • Little Rock is the state capital and government and medical hub, with Little Rock Air Force Base nearby in Jacksonville.
  • The University of Arkansas in Fayetteville adds student housing demand.
Before you offer

Arkansas investor checklist

Run through these Arkansas rules before you write an offer on a rental.

  • Security deposit: 2 months' periodic rent (law.justia.com)
  • Unpaid rent notice: 3 days' written notice to quit and demand for possession (unlawful detainer) (Ark. Code § 18-60-304(3))
  • Ending a month to month lease: 2 months' periodic rent (law.justia.com)
  • Rent control: Preempted (law.justia.com)
  • Tax basis: Amendment 79 caps annual growth in taxable value: homestead 5% per year, all other parcels (including rentals) 10% per year, except new construction and substantial improvements (dfa.arkansas.gov)
  • Security instrument: Mortgages and deeds of trust both used (Ark. Code § 18-50-102)
  • Transfer and recording taxes: $1.10 per $1,000 plus an additional $2.20 per $1,000, total $3.30 per $1,000 of consideration (Ark. Code § 26-60-105)
  • Closing attorney: Mortgages and deeds of trust both used (Ark. Code § 18-50-102)
  • LLC formation: $45 online, $50 paper (Certificate of Organization, Form LL-01) (sos.arkansas.gov)
  • LLC upkeep: $150 annual franchise tax for every LLC, report due May 1 (late penalty $25 plus interest) (sos.arkansas.gov)
  • Short term rental, Little rock: City document states the 2023 STR ordinance caps STRs at 500 within city limits (littlerock.gov)
Step by step

From offer to closing in Arkansas

  1. Send the Arkansas deal
  2. We run the DSCR
  3. We shop lenders
  4. Appraisal confirms rent
  5. Close in your name or LLC

Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.

FAQ

Arkansas DSCR loan questions

Straight answers for investors buying or refinancing rentals in Arkansas.

PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

Book a free call

Does Pillar Mortgage Group offer DSCR loans in Arkansas?

Yes. Purchases, rate and term and cash out refinances on Arkansas rentals, up to $5 million, in your name or an LLC. That includes Little Rock, Fayetteville-Springdale-Rogers (Northwest Arkansas), Fort Smith and Jonesboro.

Which rent counts on a Arkansas DSCR loan?

The lease or the appraiser's market rent. As a benchmark, HUD puts the 2 bedroom Fair Market Rent for the Little Rock metro at $1,121 a month.

How much security deposit can a Arkansas landlord take?

2 months' periodic rent.

How does a Arkansas landlord start the process for unpaid rent?

3 days' written notice to quit and demand for possession (unlawful detainer). (Ark. Code § 18-60-304(3))

What notice ends a Arkansas month to month tenancy?

2 months' periodic rent.

How is a rental property taxed in Arkansas?

Amendment 79 caps annual growth in taxable value: homestead 5% per year, all other parcels (including rentals) 10% per year, except new construction and substantial improvements. Homestead credit up to $500 per year, rising to up to $600 starting with 2026 bills.

Do I need an attorney to close a rental in Arkansas?

Mortgages and deeds of trust both used. Statutory Foreclosure Act allows nonjudicial foreclosure. Authorized foreclosing parties limited to an Arkansas bar member trustee or attorney in fact with an in state office, or qualifying lenders/servicers with an Arkansas location. (Ark. Code § 18-50-102)

Does Arkansas have rent control?

Preempted. A local governmental unit may not enact, maintain or enforce an ordinance or resolution controlling the amount of rent, rental application fees or rental deposits for private residential or commercial property.

Is Arkansas a mortgage or deed of trust state?

Arkansas closes on a mortgage. Mortgages and deeds of trust both used. Statutory Foreclosure Act allows nonjudicial foreclosure. Authorized foreclosing parties limited to an Arkansas bar member trustee or attorney in fact with an in state office, or qualifying lenders/servicers with an Arkansas location. (Ark. Code § 18-50-102)

Does Arkansas charge a transfer tax when I buy a rental?

$1.10 per $1,000 plus an additional $2.20 per $1,000, total $3.30 per $1,000 of consideration. (Ark. Code § 26-60-105)
Nearby states

DSCR loans in nearby states

Investing across state lines? We lend DSCR in these neighbors of Arkansas too.

Sources and review dates

Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.

  1. HUD FY2027 Fair Market Rent, Little Rock, North Little Rock, Conway, AR HUD Metro FMR Area: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=0511999999&reporttype=county&states=5&year=2027&sa_override=1
  2. Ark. Code 18-50-102: https://law.justia.com/codes/arkansas/title-18/subtitle-4/chapter-50/section-18-50-102/ (checked 2026-11-01)
  3. Ark. Code 26-60-105: https://law.justia.com/codes/arkansas/title-26/subtitle-5/chapter-60/section-26-60-105/ (checked 2026-11-01)
  4. law.justia.com: https://law.justia.com/codes/arkansas/title-18/subtitle-2/chapter-16/subchapter-3/section-18-16-304/
  5. Ark. Code 18-60-304: https://law.justia.com/codes/arkansas/title-18/subtitle-5/chapter-60/subchapter-3/section-18-60-304/ (checked 2026-11-01)
  6. law.justia.com: https://law.justia.com/codes/arkansas/title-14/subtitle-2/chapter-16/subchapter-6/section-14-16-601/
  7. sos.arkansas.gov: https://sos.arkansas.gov/business-commercial-services-bcs/forms-fees/llc
  8. Realtor.com via FRED: https://fred.stlouisfed.org/series/MEDLISPRIAR
  9. HUD FY2027 Fair Market Rent, Fayetteville, Springdale, Rogers, AR MSA: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=0514399999&reporttype=county&states=5&year=2027&sa_override=1
  10. Little Rock Board agenda BC-Z-10303: https://littlerock.gov/wp-content/uploads/meeting-agenda/AGENDA%20-%20WEB%20-%209-15-2026/BC-Z-10303.pdf (checked 2026-11-01)
  11. Ark. Code § 18-16-305(a)(1): https://law.justia.com/codes/arkansas/title-18/subtitle-2/chapter-16/subchapter-3/section-18-16-305/
  12. Ark. Code § 18-16-303: https://law.justia.com/codes/arkansas/title-18/subtitle-2/chapter-16/subchapter-3/section-18-16-303/
  13. Ark. Code 18-17-704: https://law.justia.com/codes/arkansas/title-18/subtitle-2/chapter-17/subchapter-7/section-18-17-704/ (checked 2026-11-01)
  14. Arkansas DFA property tax relief: https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief (checked 2026-11-01)
  15. sos.arkansas.gov: https://www.sos.arkansas.gov/uploads/LLC1_FT_2024.pdf
Arkansas investors

Let the rent do the qualifying.

Send the Arkansas property and rent. We run the ratio and lay out terms before you offer.

Run My Arkansas DSCR Numbers

No commitment  ·  Under 2 minutes

Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

✓

Got it.

We will reach out shortly to run your numbers.

Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
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