Owning Land In Arkansas: Pros & Cons | askBAMLand

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Is buying and owning land in Arkansas a wise investment decision? Is it something you should consider? We will explore the pros and cons in this guide.

Should you consider buying and owning land in Arkansas? Can you get a return on your investment? Let’s weigh in on the pros and cons.

Pros of owning land in Arkansas include:

  • Affordable investment
  • Plenty of uses and investment opportunities
  • Low maintenance
  • Lower investment costs
  • Long-term appreciation

These are the cons:

  • Won’t generate income right away
  • Infrastructural problems

Buying and owning land in Arkansas looks like a solid investment idea. But is it the reality on the ground? Well, this guide has the answers. This article will explore the pros and cons of owning land in Arkansas. So, if you have been planning to make this move but have been unsure whether it’s the right investment decision, this guide has the answers.

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With a population of approximately 3 million people, Arkansas remains one of the smallest states in the nation. But, it doesn’t have a shortage of opportunities and natural beauty. Arkansas is home to the Ozark Mountains, which it shares with Oklahoma, Kansas, and Missouri.

It also has plenty of crystal-clear rivers, lakes, streams and other water bodies. Arkansas is also the headquarters of the popular retail brand, Walmart. Besides its diverse landscape and stunning views, the Natural State is also home to celebrities like former POTUS Bill Clinton, Billy Bob Thornton, Maya Angelou, Johnny Cash and Dick Van Dyke, just to name a few.

The housing is affordable, the people are friendly, the weather is great and the transportation network is extensive. Also, it has one of the lowest property taxes in the country and the food is great. It also has that small-town vibe, not to mention that southern charm.

Pros of Owning Land in Arkansas

For someone looking to buy and own land, Arkansas comes across as a great place. But, will it be the right move? Let’s take a closer look at some of the pros of owning land in Arkansas.

Affordable Investment

The average cost of vacant land in Arkansas is approximately $3,500. And you can get even cheaper lots, deep in the rural areas. So, if you are looking to invest in real estate in Arkansas, buying and owning land presents a great opportunity. Buying and owning vacant land in Arkansas provides an affordable option, compared to developed or already built land. And after you’ve purchased the land, you can leave it vacant until you have raised enough funds to develop it, in your own time.

Plenty of Uses and Investment Opportunities

Another major benefit of buying and owning land in Arkansas is that you have the freedom to do with it as you wish, as long as you comply with the local building codes and zoning restrictions. Some of the options that you can pursue with the land after buying it include:

Build Your Home

After buying and owning land in Arkansas, you can decide to use it to build your dream home. And since the land is yours, you will have the opportunity to build the type of house that you’ve always dreamed of, meaning you can customize it as much as you want.

For instance, you can decide to add a hidden room, include a kitchen nook, an indoor spa, a laundry room upstairs, in-built shelves, a mudroom, a spacious home office, home theater, game room, or a decked out kitchen, just to name a few.

You can also include an outdoor kitchen, a customized swimming pool, outdoor lounge, sports area, or an oversized garage. As you can see, your customization options when building your home are endless, when you have your own piece of land in Arkansas.

Flip the Land

After buying and owning land in Arkansas, you can also decide to sell it to another buyer, a method known as land flipping. With this method, you will be selling the land at a higher price than you purchased it, thus making a profit.

You can decide to sell the land that you own in Arkansas as you purchase it or subdivide it into smaller lots. Subdividing the land into smaller lots is the better method because you will find it easier to find a buyer, compared to selling a large piece of land. Besides, the profit margin for the smaller lots will be higher with this method.

Build Commercial or Residential Properties

In case you decide against selling the land, you also have the option of building commercial or residential properties on it. If the land has been zoned for residential purposes, then you can build various types of residential units on the land, depending on the demand in the area.

And if the land that you’ve purchased and owned in Arkansas has been zoned as commercial, you can decide to build office space, parking lots, campground, RV storage, or horse stables, open a bed and breakfast, build a gas station close to the road or build a concert venue. As long as you have up-front capital, you have numerous ways to generate income with your land.

Farm the Land

As earlier mentioned, Arkansas enjoys great weather throughout the year. Furthermore, it has a diversity of rich soils, which can provide a favorable environment for growing a wide range of crops. Besides, Agriculture is the leading industry in the state.

So, if you won’t mind getting your hands dirty, you also have the option of farming after buying and owning land in Arkansas. Some of the crops that you can grow on your piece of land in Arkansas include rice, cotton, grain sorghum, corn, soybeans and wheat.

Also, you can raise different types of livestock on your piece of land in Arkansas like whole chickens, turkeys, dairy cattle, beef cattle, rabbits, sheep, goats, and horses, among others.

Low Maintenance

Another benefit of buying and owning land in Arkansas is that it doesn’t require extensive maintenance. When you have a vacant piece of land in Arkansas, you don’t have to worry about issues like repair work, cleaning the yard, renovations, and other similar maintenance issues that come with developed properties.

Lower Investment Costs

Buying and owning land in Arkansas is a largely affordable investment. When you buy vacant land in Arkansas, your property taxes, insurance and rates will be considerably lower, compared to buying developed property. Furthermore, you won’t need to hire a property manager to take care of the land. Also, you won’t have to worry about evicting or finding tenants.

In short, if you are looking to venture into the real estate industry, buying and owning land provides an affordable means of doing it. Unlike other types of real estate investments, you don’t need thousands of dollars to buy and own land in Arkansas.

Long-term Appreciation

When you buy and own land in Arkansas, it will remain in the same condition. As much as the elements may have some impact on the land, it will continue appreciating with time.

According to a survey conducted by the National Association of Realtors, land prices in 2021 rose by approximately 6%, faster than the majority of the other commercial real estate prices.

So, as long as you purchase the land in a desirable location, you can expect to earn substantial returns when you decide to sell it later on. Buildings, on the other hand, tend to deteriorate with time, meaning you may end up selling them at a loss.

Cons of Owning Land in Arkansas

While buying and owning land in Arkansas comes with numerous benefits, there are also a couple of drawbacks, which you need to consider. Some of the disadvantages of buying and owning land in Arkansas include:

Won’t Generate Income Right Away

The major drawback to buying and owning land in Arkansas is that it won’t generate income right away. Unless you lease the land to farmers or rent it out for parking, your vacant piece of land won’t generate any income straight away. You can only expect to generate income from it after selling it at a profit.

It’s also worth mentioning that finding the right buyer for a piece of land is not that easy, especially if it’s located in an undesirable location. So, you may end up tying up your funds for several years, which you may have invested elsewhere. Hence, if you don’t afford to have your funds tied up for several years, then buying and owning land in Arkansas may not be the right move for you.

Infrastructural Problems

While rural land is affordable to most buyers, it lacks adequate infrastructural support. For instance, you may find that the piece of land that you have purchased in Arkansas doesn’t have access to roads, electricity, sewer, potable water, and other important utilities.

To this end, if you decide to develop the land, you will have to spend more of your money installing alternative utilities. For example, you may be forced to dig a borehole, install a septic tank, purchase an electricity generator, or create an access road to the property. And all these installations will cost thousands of dollars, thus increasing the cost of investing in such a property by a great margin.

Considerations for Buying and Owning Land in Arkansas

Overall, buying and owning land in Arkansas appears like a good investment decision. But, before you rush to invest in land in Arkansas, there are a couple of things to watch out for, to ensure you get value for your money. Here are some of the factors to consider when it comes to buying and owning land in Arkansas.


Infrastructural support is key if you are looking to buy and own land in Arkansas. Infrastructure includes road access as well as the availability of public utilities such as electricity, water, sewer, TV, internet, and telephone. If you are planning to build on the land that you will buy, then you need to make sure it has infrastructural support.

Property History

It’s also worth undertaking a thorough assessment of the property to determine its history. You may be probably asking yourself why you should spend your resources conducting property history.

Well, you may come across a cheap piece of land located in a prime area. The problem is that a cheap piece of land may have been a landfill, which has been recently cleared. And, it may still have some contaminations, meaning you won’t get any approvals to develop it the way you would wish.

Also, a piece of land may have a history of disputes, meaning you may spend thousands of your money in court to resolve such disputes. By checking the property history, you will save yourself from all these unfortunate situations.


Before you buy and own land in Arkansas, you should research the zoning of the area. Zoning simply refers to how a certain piece of land is supposed to be used. For example, if you buy a piece of land that has been zoned for residential use, you may not be able to build commercial units or facilities on the property. And as much as you can apply for re-zoning, the entire process can consume a considerable amount of resources.


In simple terms, easements refer to rights granted to another individual or entity, to use another person’s piece of land. For instance, this could be a public entity, which needs access to your land, to service public utilities like water lines or electricity. It could also be a neighbor, who wants access to a drain tile pipe passing through your land. As much as these easements may not hurt your investment in any way, it’s important to determine their existence on your property, so that you can plan your construction projects with them in mind.

Property Rights

You should also check the land’s property rights, especially if it’s a lakefront or riverside lot. For example, you should check whether the property’s boundaries extend to the water edge or riverbed. So, if you want to add a swim platform or a dock, you won’t have any issues with the authorities. You also need to check whether you can be allowed to pump water from the lake or river for drinking or irrigation.

Wrapping It Up

Buying and owning land in Arkansas comes with numerous benefits. And, getting a piece of land that you can develop or re-sell at a profit isn’t a complex process. You simply need to undertake thorough due diligence and enlist the help of professionals whenever necessary.


Brittany Melling

Brittany Melling

Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.

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