1031 Exchange in Jonesboro MSA
The Jonesboro MSA offers solid 1031 exchange opportunities with competitive cap rates, stable rental demand driven by Arkansas State University and healthcare employment, and favorable property taxes in Arkansas's growing northeast region.
Population
135,000
Key Industries
Healthcare (NEA Baptist), Education (Arkansas State), Manufacturing
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.75% - 0.90%
Assessment Method
Assessed Value (Arkansas Property Tax Code)
MSA rate (0.83%) vs State average (0.53%)
+57% above state average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Local recording fees and title insurance costs apply
Local Tax Incentives
Arkansas Economic Development Incentives
Various state incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Jonesboro Economic Development
Local incentives for business expansion and retention
Eligibility: Companies creating jobs and investing in the area
Opportunity Zones
Number of Zones
2
Key Locations
- Downtown Jonesboro
- East Jonesboro
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
135,000
Growth: +1.8% annually
Median Income
$55,478
Unemployment
3.2%
Job Growth
+13% (historical outperformance)
Economic Drivers
Market Trends
Median Home Price
$218,000 - $250,000
Average Rent
$1,125/mo
Cap Rates
8.0% - 10.0%
Demographics
Median Age
33.7 years
Bachelor's Degree+
38.5%
Owner Occupied
62.8%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by Arkansas State students, healthcare workers, and young professionals with stable institutional employment base.
Market Metrics
- Cap Rates: 9.2%
- Vacancy Trends: Low vacancy at 7.8% due to university and healthcare employment
- Demand Forecast: Stable demand from Arkansas State growth and healthcare expansion
Risk Factors
- Dependence on university enrollment trends
- Seasonal rental patterns with academic calendar
Opportunities
- Arkansas State University enrollment stability
- NEA Baptist Health system employment growth
Single-Family Rental
Popular with faculty, healthcare professionals, and families seeking quality housing in university town.
Market Metrics
- Cap Rates: 10.0%
- Vacancy Trends: Very low vacancy at 5.8% with excellent tenant retention
- Demand Forecast: Strong fundamentals with university and healthcare employment base
Risk Factors
- Academic calendar affecting some rental patterns
- Competition from student-focused housing
Opportunities
- High-income tenant base (faculty, healthcare)
- Strong rental yield potential (8-10%)
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
University Area
Residential area surrounding Arkansas State University campus with strong student housing demand
Investment Thesis
Strong student housing demand, faculty rental market, and stable university employment base providing consistent rental income.
Median Price
$195,000
Price Growth
-1.8% YoY
Rental Yield
9.8%
Days on Market
45 days
Key Highlights
Development Pipeline
Student housing and faculty residential development
Downtown Jonesboro
Historic downtown core with opportunity zone designation and ongoing revitalization
Investment Thesis
Opportunity zone benefits, downtown revitalization, and potential for appreciation as development continues.
Median Price
$165,000
Price Growth
-2.5% YoY
Rental Yield
10.5%
Days on Market
52 days
Key Highlights
Development Pipeline
Downtown revitalization and mixed-use development projects
Medical District
Area surrounding NEA Baptist Health System with healthcare worker housing
Investment Thesis
Healthcare worker housing demand, NEA Baptist employment stability, and medical facility expansion.
Median Price
$235,000
Price Growth
-0.8% YoY
Rental Yield
8.8%
Days on Market
38 days
Key Highlights
Development Pipeline
Healthcare facility expansion and professional housing
West Jonesboro
Growing suburban area with family amenities and newer development
Investment Thesis
Family rental market, newer housing stock, and appeal to university and healthcare professionals.
Median Price
$285,000
Price Growth
+0.5% YoY
Rental Yield
8.2%
Days on Market
42 days
Key Highlights
Development Pipeline
Suburban residential and commercial development
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Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Jonesboro (Current) | Little Rock | Fayetteville | Pine Bluff |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Jonesboro 1031 exchanges
Jonesboro offers strong cap rates (8-10%), stable rental demand from Arkansas State University and NEA Baptist Health, competitive property taxes (0.83% vs. 1.02% national), no state income tax, and exceptional job growth (+13% vs. 2.5% national).
Arkansas State provides stable student housing demand plus faculty/staff creating consistent rental income, while NEA Baptist employs thousands in healthcare (10,933 in sector) offering stable, high-income tenants. Both institutions provide employment stability and growth.
Yes, Jonesboro has two designated Opportunity Zones including downtown, offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains.
The economy is anchored by healthcare (10,933 workers), Arkansas State University, manufacturing (7,990 workers including Nestle USA), retail trade (8,092 workers), and agriculture, providing diversified employment base.
Arkansas offers competitive property taxes (0.83% vs. 1.02% national), no state income tax for high earners, and business-friendly policies. The university and healthcare presence provides stable employment and consistent housing demand supporting strong returns.