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.
DSCR loans by state
We lend DSCR in 35 states. Pick yours.
Pulled from state statutes, state agencies, the Census Bureau and FRED. Each row links to its source.
| Arkansas fact | Value | Source |
|---|---|---|
| Security instrument | Mortgages and deeds of trust both used; Statutory Foreclosure Act allows nonjudicial foreclosure | Ark. Code § 18-50-102 |
| Foreclosure | Mortgages and deeds of trust both used; Statutory Foreclosure Act allows nonjudicial foreclosure | 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 |
| Security deposit | 2 months' periodic rent | law.justia.com |
| Notice for unpaid rent | 3 days' written notice to quit and demand for possession (unlawful detainer) | Ark. Code § 18-60-304(3) |
| Rent control | Preempted | law.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 metro | HUD User |
Full walk through: how DSCR is calculated.
What PMG can place for a Arkansas rental, in short.
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.
Rent is the number that qualifies a DSCR loan, so start with what Arkansas rentals actually command.
Median listing price
$318,743
September 2026, up 4.5% from $304,950 in September 2025
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.
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.
See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.
Enter rent, price and your quoted rate to see your DSCR.
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
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.
Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Arkansas rents. Not a quote or a rate.
0.63DSCR
$1,121 / $1,775 = 0.63: fits programs down to 0.50.
0.71DSCR
$1,256 / $1,775 = 0.71: fits programs down to 0.50.
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.
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Most Arkansas DSCR deals land in these markets. Check the city rules before you buy.
City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.
Know the Arkansas landlord rules before you close. They shape your lease, your deposit and how fast you can act on unpaid rent.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit cap | 2 months' periodic rent | law.justia.com |
| Deposit return deadline | 60 days after termination of tenancy | Ark. Code § 18-16-305(a)(1) |
| Small landlord exemption | Deposit 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 notice | 3 days' written notice to quit and demand for possession (unlawful detainer) | Ark. Code § 18-60-304(3) |
| Month to month notice | 30 days' written notice before the termination date | Ark. Code § 18-17-704(b) |
| 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. | law.justia.com |
Not legal advice.
Every dollar of tax raises the payment the rent has to cover. Here is how Arkansas assesses and taxes property.
Who closes your loan, which security instrument you sign and what the state charges to record it.
What it costs to form and keep an LLC in good standing with the Arkansas Secretary of State.
Run through these Arkansas rules before you write an offer on a rental.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Arkansas is highlighted. We also lend DSCR in Missouri, Tennessee, Mississippi, Louisiana and Texas next door, and in 30 more states. Tap a gold state to open its guide.
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 callInvesting across state lines? We lend DSCR in these neighbors of Arkansas too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Arkansas property and rent. We run the ratio and lay out terms before you offer.
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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.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access