Five-Suite Short-Term Rental
For Sale
$1,249,500
226 Prospect Avenue, Hot Springs, AR 71901
Commercial / Industrial, Hot Springs, AR
Property Size7,524 SF
Lot Size0.13 Acres
Price / SF$166.07
Days on Market265
Property Features for 226 Prospect Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
General Commercial
Interior features
Sprinkler, Smoke Detector, Window Treatments, Exclusions (see remarks)
Directions
HSBOR to 226 Prospect AVE 1. Head north on Orange St toward Central Ave. 2. Turn right onto Central Ave. 3. Continue straight to Prospect Ave. 4. Turn left onto Prospect Ave. 226 Prospect Ave will be on your right
Subdivision
HOT SPRINGS SCHOOL DISTRICT
Standard status
Active
Size
7,524 SF
Lot size
0.13 Acres
Taxes and HOA fees
Tax Description
Block 000, Lot 002
Tax Annual Amount
5205
Legal Description
Block 000, Lot 002
Amenities
full kitchens
private balconies
spa-sized bathroom
laundry facilities
secure closet space
Building Details
Year built
1920
Floors in Building
4
Flooring type
Wood, Tile, Vinyl
Additional Structures
See Remarks
Listing Agency:
McGraw Realtors - HS
(501) 881-3331
Listed By:
Susan Bariola
(501) 350-6562
Added: Jan 13
Changed: Oct 5
Last Checked: Oct 5 at 11:06AM
MLS# 26003455
Copyright © 2026 Cooperative Arkansas Realtors Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Maison 226 is a furnished short-term rental property with five suites in a 7,524-square-foot building on a 0.13-acre parcel. Built in 1920, the property includes four one-bedroom, one-bath suites, each with a full kitchen, plus a top-floor suite with three bedrooms and two baths. The upper suite also has a large bathroom and a private balcony; the other four suites have private balconies as well. Furnishings and artwork are included in the offering.
A basement within the building’s stated area provides laundry facilities, owner storage, and secure closet space. The property is licensed and permitted for short-term rentals.
A basement within the building’s stated area provides laundry facilities, owner storage, and secure closet space. The property is licensed and permitted for short-term rentals.
Key Highlights
- Five suites in a 7,524‑square‑foot building
- Four one‑bedroom, one‑bath suites, each with a full kitchen and private balcony
- Top‑floor suite has three bedrooms, two baths, and a private balcony
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$46,431
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.72%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$928,620
$928.6K
Cap Rate 7%
$663,300
$663.3K
Cap Rate 9%
$515,900
$515.9K
Market Conditions
NOI Build-Up for 7,524 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$90.3K $12.00/SF
− Vacancy
−$5.9K −$0.78/SF
EGI
$84.4K $11.22/SF
− OpEx
−$38.0K −$5.05/SF
NOI
$46.4K $6.17/SF
Area
Garland County, AR
Vacancy
6.50%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$928,620
Cap Rate 7%
$663,300
Cap Rate 9%
$515,900
Alternative Uses
Best Use
Apartment 5plus
$663.3K
$580.4K – $773.9K
NOI $46,431 @ 7.0% cap · market cap 3.72%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.38M
$1.20M – $1.61M
NOI $96,319 @ 7.0% cap · market cap 7.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
5
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,463
Businesses Nearby
Explore this area
Business Placement
Demographics for 71901, AR
29,363
Population
14,952
Households
2
Avg Household Size
43
Median Age
26%
College-Educated
88%
High-School Grad
101.9 sq mi
ZIP Area
288
Density / Sq Mi
$52,410
Median Household Income
$35,604
Median Earnings
$797
Median Rent
$173,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Short term rental property - Guest accommodations span three levels, with full kitchens in the four one-bedroom suites and private balconies throughout.
Where is this short term rental property located?
The property is located at 226 Prospect Avenue Hot Springs, AR.
What is the asking price?
The asking price for this property is $1,249,500.
What are key features of this property?
This property features: Five suites in a 7,524‑square‑foot building; Four one‑bedroom, one‑bath suites, each with a full kitchen and private balcony; Top‑floor suite has three bedrooms, two baths, and a private balcony
