$1,629 per month. This is the condo fee for a 2,954 square foot unit in the River Market Tower in Little Rock. In the same city, a similar-sized unit in the 300 Third building pays $1,398 per month. However, looking at the entire city, the median condo fee is only $47 per month, indicating that downtown luxury condos and those in other areas are part of completely different markets.

One case I examined involved a buyer who wanted to purchase a luxury condo downtown with cash but wanted to check the possibility of obtaining a loan for resale later. Even if they buy with cash now, if a buyer in a few years needs to get a loan, whether the building is in a warrantable state can affect the sale price. According to Fannie Mae guidelines, if more than 15% of the units are in arrears, if the rental unit ratio is excessively high, or if the reserve fund is less than 10% of the budget, the condo is classified as non-warrantable, blocking access to conventional loans. Such buildings lead to a narrower pool of buyers when it comes time to sell.

This means that unlike single-family homes, condos are evaluated based on the entire building and the financial health of the homeowners association. Currently, there are 71 condos for sale in Little Rock, with prices ranging from $9,900 to $1.65 million. The median home price in Arkansas as of January 2026 is $269,950, with an average sale price of $325,242. This data is sourced from Zillow's 2026 report. Condos typically sell after about 44 days on the market.

Arkansas is among the states with the lowest HOA fees nationwide. Only 12.1% of Arkansas households pay HOA or condo fees, with a median fee of $47, which is one of the lowest in the country. However, townhomes range from $200 to $400 per month, and standard condos are priced between $600 and $900, making the $1,398 or $1,629 fees for downtown luxury condos unusually high.

Another implication of these numbers is that Arkansas has very few legal requirements regarding the financial management of homeowners associations. There are no laws mandating reserve studies or setting minimum reserve balances for associations. This contrasts with Florida, where the SB 4-D law mandates structural inspections and full reserve funding following the Surfside condo collapse. Since the law does not require it, it is advisable to request the association's meeting minutes and the financial statements from the past 2-3 years to verify the actual reserve balance before purchasing.

From an investment perspective, condos require less hands-on management since the homeowners association handles lawn care and exterior maintenance, making them a more manageable option for investors living in other states while managing Little Rock properties. However, choosing a building with poor financial health can turn the goal of reducing management burdens into unexpected expenses due to special assessments. It is wise to check the meeting minutes for any history of lawsuits or disputes and to confirm there are no rental restrictions before signing a contract. If you are coming from another state, keep in mind that property tax and insurance structures may differ from your previous residence.

Having observed this market for decades, I feel that low fees do not guarantee peace of mind, nor do high fees necessarily mean a burden. Ultimately, what matters is how much reserve fund is accumulated within those fees and whether the building can pass loan underwriting. I believe that verifying these two aspects should come before calculating rental yields.

This article is not investment or legal advice, and I recommend consulting with a loan officer and a real estate professional before proceeding with any contracts.