Bentonville
Investment Analysis

Bentonville, AR
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

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43
Investment Score
Rent
Cap Rate (Est.)
1.1%
Gross Yield
1.9%
P/R Ratio
41.7x
YoY Growth
+6.1%
Median Home Price
$500,000
Average Rent (1BR)
$773/mo
Median Income
$108,465
Population
56,326

Investment Breakdown

0
Value Score
100
Growth Score
33
Safety Score
59
Afford Score

Bentonville has a price-to-rent ratio of 41.7x, which indicates renting is more favorable than buying.

The estimated cap rate of 1.1% is below average, typical of appreciation-focused markets.

Year-over-year price growth of +6.1% shows strong appreciation momentum.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $773
Annual Gross $9,276

Est. Monthly Expenses

Property Tax (~1.5%) -$625
Insurance (~0.5%) -$208
Maintenance (~1%) -$417
Est. Net Cash Flow -$477/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Bentonville Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$480K2027$524Kโ–ฒ 9.2%2028$557Kโ–ฒ 16.0%20232024Now
$585K$392K
Current
$500K
2026
Projected
$524K
โ†‘ 9.2% by 2027
Projected
$557K
โ†‘ 16.0% by 2028
5yr CAGR:+10.5%
Confidence:High
Rยฒ:0.88
โ–ผ

Looking at the Bentonville housing market forecast through 2028, the numbers paint a picture of a cooling but resilient local economy. The current median home price of $480,044 reflects a staggering 5-year price change of 67.2%, far outpacing national norms. However, the price-to-rent ratio sits at an elevated 46.0x (national avg: 18x), signaling that buying remains significantly more expensive than renting. With a market temperature of 60/100 and days on market at 35, the frenzy is subsiding, but inventory remains tight enough to prevent a sharp correction. The local economy, anchored by Walmart and the broader supplier ecosystem, continues to drive high-wage job growth, which will likely underpin demand. Yet, the "Buy/Rent Verdict" clearly leans toward RENT, as affordability constraints may cap future appreciation.

For prospective buyers asking if Bentonville home prices will drop, the data suggests a period of stabilization rather than a significant downturn. The risk grade of A indicates strong market fundamentals, and the YoY price change of 5.1% shows momentum is slowing but still positive. While the 10.6% CAGR over five years is unsustainable, the influx of corporate investment and infrastructure development tied to the region's status as a retail hub should support values. Affordability will remain the central challenge, potentially pushing demand toward surrounding areas as buyers seek entry points. The Bentonville real estate landscape in 2027 will likely be defined by moderate growth, where price gains decouple from the rapid inflation of previous years.

A balanced assessment for the Bentonville real estate Bentonville 2027 outlook suggests a market normalizing to sustainable levels. The 5-Year Price Change of 67.2% has created a high baseline, making further explosive growth unlikely without a commensurate rise in incomes. While the rent-to-buy disparity favors renting in the short term, the Risk Grade: A and steady economic base provide a floor for housing values. We anticipate a shift toward a more balanced buyer-seller dynamic, with price appreciation likely settling in the 2-4% range annually as the market digests recent gains. Investors should watch for continued rental demand, but the immediate speculative heat is dissipating, leaving a healthier, albeit less volatile, market trajectory.

Projected Cap Rate (2027)
1.1%
5yr CAGR
+10.5%

Job Market

Unemployment 3.5%
National avg: 3.7%
Job Growth (YoY) +1.2%

Healthcare

65
Score
Below Avg

Risk Factors

High Crime Area
Overvalued Market

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 96.7%
Months Supply 5.2
Price Drops 22%
Gone in 2 Wks 15%

Market Position

Affordability Below Avg
Safety Higher Risk

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Bentonville.

Total ROI
-10%
on $100,000 invested
Annual ROI
-2.1%
compounded
Total Return
-$10,047
appreciation + cashflow
Mo. Cash Flow
-$3,123
year 1 estimate
Equity Growth Over 5 Years
Y1135kY2172kY3211kY4252kY5297k
Appreciation
$173,226
Cash Flow
-$183,273
Final Equity
$296,667

* Estimates based on 6.1% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Bentonville

Property

Purchase Price$500,000
Monthly Rent$773
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$2,836
Monthly Cash Flow
-$34,027/ year
-34.0%
Cash-on-Cash
-0.7%
Cap Rate

Monthly Breakdown

+ Rental Income$773
โˆ’ Mortgage (P&I)$2,528
โˆ’ Property Tax$500
โˆ’ Insurance$125
โˆ’ Maintenance$417
โˆ’ Vacancy Loss$39
= Net Cash Flow-$2,836

Investment Summary

Down Payment
$100,000
Loan Amount
$400,000
Total Monthly Expenses
$3,609
Gross Yield
1.9%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026