Invest In Apartment Buildings In Texarkana, AR

Who Rents In Texarkana

About 45.3% of households in Texarkana, AR rent their home. That's 5,139 renter households, according to the Census Bureau's ACS 2020–2024 estimates. The renter count grew 2.6% from the 2015–2019 survey, faster than the population's -2.4% gain. That means part of the new demand came from people who already lived here and chose to rent.

The typical Texarkana household earns $45,835 a year, 15.7% more than in the 2015–2019 survey. The number of employed residents fell 4.9% over the same period, and unemployment stood at 7.5%. Rent has risen faster than income (23% versus 15.7%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Renters are a large minority in Texarkana. Buildings close to employers and main roads usually see the steadiest demand. Population fell 2.4% over five years, so we'd plan for slower leasing and conservative rent assumptions here.

The Supply Picture In Texarkana

Median gross rent in Texarkana, AR is $909 a month, up 23% from $739 in the 2015–2019 survey (U.S. Census ACS 2020–2024). It's a healthy increase, without the spike some fast-growing metros saw.

Rental vacancy is 11.5%, higher than we like to see. Before buying here, we'd want to know whether the empty units sit in a few older properties or across the whole market. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 51.6% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 13.3% of homes in Texarkana are in buildings with 5 or more units, roughly 1,815 homes. That count was down 27.5% over five years, so new apartment supply has been limited. The median home was built in 1979, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation.

Where Texarkana Stands Among Its Peers

Among the 21 Arkansas cities we track, Texarkana ranks 18th for median gross rent, 11th for renter share and 18th for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. In raw numbers, Texarkana has about 724 fewer residents, 130 more renter households and 688 fewer homes in buildings with 5 or more units than in the 2015–2019 survey.

Texarkana Compared With Arkansas

Texarkana's median gross rent of $909 is below the Arkansas median of $947, and its renter share is 45.3% compared with 33.6% statewide.

Can Tenants Afford Texarkana Rents?

The median rent in Texarkana works out to $10,908 a year, about 23.8% of the median household income of $45,835. Under the common 30% guideline, a household needs about $36,400 a year to cover that rent comfortably. That's a heavier load than the Arkansas average of 18.7%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $170 a month ($2,040 a year), while median household income rose $6,220 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal.

Quick Facts: Texarkana Rental Market

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Texarkana, AR has 29,177 residents, down 2.4% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Texarkana, AR is $45,835, up 15.7% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Texarkana, AR is $909 a month, up 23% over five years (U.S. Census ACS 2020–2024).
• 45.3% of households in Texarkana, AR rent, about 5,139 renter households (U.S. Census ACS 2020–2024).
• 13.3% of homes in Texarkana, AR are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Texarkana, AR is 11.5%, and 51.6% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Texarkana, AR was built in 1979 (U.S. Census ACS 2020–2024).

What We Look For In A Texarkana Apartment Building

Our buy box in Texarkana is the same one we use nationwide: 5+ unit apartment buildings, stabilized or in need of work, priced on today's rents. Then we test the property against the local data on this page and a full inspection of its major systems.

Property taxes are a big line item for any Arkansas apartment building. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. Arkansas has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Arkansas reflect hail and wind damage, so we get a quote before we make an offer.

With vacancy on the high side, we budget for longer lease-ups and look for buildings whose occupancy is already above the market average.

Evaluating Apartment Syndications In Texarkana

Whoever the sponsor is, these are the questions we would want answered about any apartment syndication in Texarkana, based on the local numbers above.

• What vacancy does the plan assume? Rental vacancy in Texarkana is 11.5%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 23% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Texarkana was built in 1979, so roofs, plumbing and electrical systems deserve their own line items.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Texarkana Apartment Syndication Works

Here's the short version. The general partner, in this case Skyline, finds an apartment building in Texarkana, buys it with a loan and investor capital, and runs it. Limited partners supply part of that capital and hold an ownership share, without landlord duties or personal liability for the loan.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

The first step is the investor network. It's free, and it's how we share market notes and get to know investors. If we buy in Texarkana or elsewhere and you're eligible, we'll reach out privately with the details.