Arkansas remains one of the most affordable states for homeownership in the U.S., offering numerous opportunities for buyers seeking properties under $20,000. With the state’s low cost of living (17% below the national average) and median home values still significantly lower than other states (Zillow, 2024), Arkansas is an ideal place for budget-conscious buyers and real estate investors.
Whether you’re looking for a fixer-upper, a rental investment, or a quiet place to retire, there are still pockets in Arkansas where homes can be purchased at exceptionally low prices. Below, we explore the top cities where you can still buy a home for less than $20K in 2025.
1. Little Rock Metro Area
Median Home Price: $175,000 (Zillow, 2024)
While Little Rock itself has seen rising home prices, there are still affordable neighborhoods and suburbs within the metro area that offer properties under $20,000. Areas such as South End and Oak Forest sometimes have foreclosures and distressed properties available at bargain prices. Investors and first-time buyers looking for affordable properties in Little Rock can also explore auction homes and fixer-uppers.
If you’re looking for an affordable way to sell or buy a home in Little Rock, working with Paranova Property Buyers—founded by Andrew, an experienced property specialist—can simplify the process. They offer quick sales and fair deals, eliminating the hassle of traditional real estate transactions. Their team ensures a smooth experience, making it easier for homeowners to transition to their next chapter without delays.
Additionally, Little Rock’s economic growth is another factor contributing to its rising housing market. With an increase in tech startups, healthcare expansions, and retail businesses, more people are moving to the city, creating opportunities for investors to flip affordable homes for a profit.
2. Pine Bluff
Median Home Price: $64,000 (Redfin, 2024)
Pine Bluff continues to offer some of the lowest home prices in Arkansas. This city has a declining population, leading to more affordable housing options, with some properties listed as low as $10,000–$15,000. Investors often purchase homes here for renovation and rental income due to the low property taxes and steady rental demand.
In addition, the city has started multiple revitalization projects aimed at improving infrastructure, creating parks, and attracting new businesses. These improvements could potentially increase property values over the next decade, making it a smart investment location.
3. Fort Smith
Median Home Price: $151,000 (Realtor.com, 2024)
Fort Smith, located along the Arkansas-Oklahoma border, has pockets of highly affordable homes. Certain neighborhoods, such as Northside and Downtown Fort Smith, occasionally offer homes for $20K or less. Investors find this market attractive due to its rental demand and job growth in manufacturing and logistics.
Moreover, the city has strong employment growth, with industries like transportation, healthcare, and education expanding, increasing demand for rental properties. Buying low-cost homes in Fort Smith and renting them out can be an excellent long-term investment strategy.
4. Texarkana
Median Home Price: $145,000 (Movoto, 2024)
Texarkana, straddling the Arkansas-Texas border, is another area where cheap homes can still be found. Some foreclosures and fixer-uppers are available for $15,000–$20,000, making it a great option for buyers on a budget. The dual-state economy benefits Texarkana’s growth, as people from both Arkansas and Texas contribute to its real estate demand.
For buyers interested in house flipping or rental investments, Texarkana offers a low-risk, high-reward environment. The cost of renovations remains low compared to larger cities, making it possible to increase property value without excessive costs.
5. Helena-West Helena
Median Home Price: $58,000 (Zillow, 2024)
This city in eastern Arkansas continues to offer some of the cheapest real estate in the state. Many homes in the area sell for $10K–$20K, with some needing only minor renovations. This makes Helena-West Helena an appealing option for investors or buyers looking for low-cost housing options in Arkansas.
The region is known for its rich history, proximity to the Mississippi River, and lower living expenses. As the state continues to grow economically, cities like Helena-West Helena may become hidden gems for future real estate developments.
Why Buy Affordable Homes in Arkansas?
- Low Cost of Living – Arkansas is one of the most affordable states to live in, with lower-than-average property taxes.
- Investor-Friendly – Many homes under $20K are ideal for fix-and-flip or rental investments.
- Growing Job Markets – Cities like Little Rock and Fort Smith are experiencing economic growth, leading to increased housing demand.
- Access to Reliable Buyers – If you’re looking to sell your property fast, working with Paranova Property Buyers ensures a hassle-free selling process without real estate commissions.
- Strong Rental Market – With the cost of buying homes so low, many investors turn these properties into profitable rental units, ensuring steady income.
Final Thoughts
Arkansas remains one of the last frontiers for budget-friendly real estate investments, with multiple cities still offering homes under $20K. Whether you’re an investor or a homebuyer, these cities present a unique opportunity to buy low-cost homes with strong potential for appreciation.
If you’re looking to buy or sell a home quickly, consider working with cash home buyers who specialize in quick, fair cash offers. Whether you need to offload a distressed property or purchase an affordable home, companies like Paranova Property Buyers can provide a stress-free transaction, ensuring you get the best deal possible without the hassle of traditional real estate listings.
For those interested in Arkansas’s affordable real estate market, now is the perfect time to explore and invest before these hidden gems become harder to find. If you’re ready to take the next step, reach out to Paranova Property Buyers to explore your options today!