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Arkansas Vacancy Loss Calculator

Vacancy is one of the biggest drags on rental property returns. This calculator shows the true cost of empty units in Arkansas — pre-filled with Arkansas average rents ($1,128/mo) and vacancy rate (9.8%).

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Property Income(Arkansas defaults)

Vacancy Assumptions(Arkansas defaults)

Operating Expenses

Arkansas Market Context

Avg Cap Rate

7%

Median Price

$253K

Property Tax

0.54%

Vacancy Rate

9.8%

Local Factors

  • -Very affordable home prices attract cash-flow focused investors
  • -Tornado alley location drives higher insurance premiums
  • -Northwest Arkansas (Bentonville/Fayetteville) is a growth hotspot due to Walmart HQ

Total Vacancy Cost

$6,806

$567/mo lost

Moderate
Gross Potential Income$54,144
Lost Rent (Vacancy)−$5,306
Turnover Costs−$1,500
Effective Gross Income$48,838
NOI (with vacancy)$5,338
NOI (0% vacancy)$12,144
Vacant Unit-Months/yr4.7
Vacancy Impact on NOI56.0%
Vacancy Cost$6,806
Net Income (after vacancy)$5,338
Vacancy Loss$5,306
Turnover Costs$1,500
Operating Expenses$42,000

What does this mean?

A vacancy rate of 7–12% is above average. This could indicate a soft rental market, above-market rents, or properties that need updates. Investigate whether rent adjustments or improvements could reduce turnover.

Understanding Vacancy Loss

Vacancy loss is the income you don't collect when units sit empty between tenants. It's the gap between what a property could earn at full occupancy (Gross Potential Rent) and what it actually collects.

Vacancy Loss = Gross Potential Rent x Vacancy Rate

What vacancy rate should you use? Most lenders underwrite 5-8% for stabilized multifamily. Arkansas averages around 9.8%. Your actual rate depends on local market conditions, property condition, and management quality.

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