What Is The Cost Of Living In Arkansas? (Taxes, Housing, & More)

Arkansas is known for its breathtaking scenery, outdoor adventure opportunities, and abundant wildlife. It also features over 600,000 acres of natural lakes and the only active diamond mine in the United States. These are a few reasons, along with a low cost of living, 3 million people call “The Natural State” home.

Overall, Arkansas has a low cost of living throughout most of the state, with some cities more affordable than others. On a cost of living index that places the US average at 100, Arkansas holds a score of 79. Fayetteville, the state’s most expensive city, has a score of 92.9.

Here’s a look at some of the most essential costs when it comes to your budget. Factors like taxes, utilities, groceries, education, transportation, and more all influence your bottom line when it comes to personal finances. Therefore, make sure to know what it could cost you to live in Arkansas before deciding to make the move.

Often, housing costs take the biggest bite out of your budget, whether you decide to own or rent. On the cost of living index, Arkansas’s overall housing costs score a 55.7, putting it significantly lower than the national average.

However, where you decide to hang your hat in Arkansas makes a big difference. For example, Fayetteville’s housing costs come in at 95.4, yet the state capital of Little Rock boasts a low 61.9. Therefore, if you have some flexibility of city choice, it can make a big difference in your bank account.

About 63.8% of Arkansas residents own their homes, while roughly 36.2% rent. Like anything else, home prices vary from city to city, but the state’s median home price is $133,100.

Over the past five years, Arkansas’s home appreciation rates of 3.64% are about on par with the national average. However, over the last quarter, that rate has almost doubled.

The majority of homes in Arkansas fall within the $118,000 to $230,000 range. However, roughly 15% of homes are below $60,000, and about 1% top one million. As with any state, some cities offer more affordable housing than others.

Additionally, in many cases, cities with more expensive homes might offer a higher median income (and vice versa). However, sometimes you can find the perfect blend of a higher median income with a lower median home price.

The median income for the state is $47,062, but this number can swing broadly from city to city. Here’s a snapshot of the median home price and income for popular cities in Arkansas.

Overall, Arkansas has lower food costs than the national average. On the cost of living index, Arkansas has a rank of 92.7, compared to the US average of 100.

In general, your food budget should be 11% of your annual income, 6% for groceries, and 5% for dining out. Arkansas’s median income is $47,062, so your food budget should be about $5,176 per year.

Here’s a look at what you could expect to pay for food items in some of Arkansas’s most popular cities.

After housing, transportation often takes up the next largest part of your budget. Transportation costs are another important factor that you must consider in order to determine the overall cost of living in a particular location. These include expenses such as gas prices, public transportation costs, and car insurance premiums.

Fortunately, Arkansas has relatively low transportation costs, coming in at 81.6 on the cost of living index. Gas prices average about $2.13 a gallon, and the average commute is roughly 20.9 minutes. Drivers pay an average of $1,551.37 a year on gas and $383.78 on car repairs.

Whereas, the average car insurance premium for full-coverage in Arkansas is about $1,763. However, if you opt for a bare-bones policy, you could pay as low as $449.

Related Questions

What are healthcare costs in Arkansas?

Arkansas features reasonably low healthcare costs. On the cost of living index, Arkansas is 86.5 for healthcare. Insurance rates vary significantly based on coverage and age. For example, a bronze plan would cost a 40-year-old about $329 per month. Alternatively, that same plan would cost a 21-year-old roughly $257 a month and a 60-year-old $698 per month.A more comprehensive plan could cost a 40-year-old about $541 a month. However, a 60-year-old will pay about $1,150 for the same plan, and a 20-year-old about $424.

What is the crime rate like in Arkansas?

Arkansas has a relatively high crime rate compared to the national average. Your chances of becoming a victim of a violent crime in the state are 1 in 171. Additionally, your chances of becoming a victim of a property crime are about 1 in 35. There are approximately 17,643 violent crimes in a year and about 86,250 property crimes reported annually in Arkansas.