DSCR Loan Calculator

Four Arkansas facts that move this number

Assessment is 20% of value, and Amendment 79 caps the increase

Arkansas taxes 20% of appraised value rather than the full value, then applies county millage. For a long hold the part that matters is Amendment 79, which limits how fast a taxable assessment can rise after reappraisal, 10% a year on non-homestead property. That makes the tax line in a five-year pro forma unusually predictable next to states that reassess straight to market. The cap resets on transfer, so it protects your hold and not your purchase. Detail on our Arkansas investor property tax page.

Insurance is the line most people under-model here

Arkansas sits where the southern storm track meets the Ozarks, and landlord premiums reflect that. The insurance field above defaults high deliberately. A deal that clears 1.20 on a national-average premium and 1.05 on a real Arkansas quote was never a 1.20 deal, and the quote is the cheapest thing on this page to get right.

Non-judicial, with no redemption after the sale

Arkansas permits non-judicial foreclosure, and under Ark. Code § 18-50-108(b) no person has a right to redeem after a statutory foreclosure sale. That shortens the tail on a distressed file compared with judicial states. It does not change your DSCR. It changes what the ratio is protecting, which is a different and more useful way to think about reserves. See our Arkansas foreclosure timeline.

Arkansas is two rental markets, not one

Northwest Arkansas and the Delta behave nothing alike, and one statewide assumption will be wrong for both. Benton and Washington counties are absorbing heavy new apartment supply, which softens pricing power even for small residential rentals that never compete with those complexes directly. The Delta trades at yields that look implausible until you model vacancy and capital expenditure honestly. Run this calculator twice, with the rent each market actually supports. Our Northwest Arkansas page and Delta yields page carry current figures.

What the lender will actually use for income

The rent above is your estimate. On a real file a DSCR program uses the signed lease or the appraiser's rent schedule, depending on the program and whether the property is tenanted. Listing-site asking rents are not the same thing and tend to run high, particularly in Northwest Arkansas right now where new properties are granting concessions. If the two disagree the appraisal wins, so it is worth setting that expectation before the order goes in.