Now that you’re thinking about Arkansas, it’s time to figure out whether you can afford it. Overall, the cost of living in Arkansas is relatively low, creating many cities that are quite affordable. Among the urban centers of the state, you also have huge patches of less densely populated areas. You can find a rural community just as easily as move into a city.
The state also provides a winning combination of outdoor activity, art and culture. You can hit a museum one day and hike the next. With Arkansas’ central location, it’s also easy to take off on weekend trips to explore neighboring states.
Living in Arkansas could very well be in your budget. To start though, let’s look at the average prices in a few key areas, including:
Arkansas housing prices
Housing in Arkansas is extremely reasonable. Most cities are considerably below the national average, giving you more freedom when it’s time to search for a place to call home.
Conway
Sitting in the center of Arkansas, Conway is a developing city that hasn’t lost any of its small-town charms. With a strong sense of community, the city boasts very affordable housing at 28.7 percent below the national average. This is great news for the influx of college students that show up each fall to attend the University of Central Arkansas and other higher education institutions.
On the rental front, apartments are very reasonably priced. One-bedroom apartments are up 2 percent over last year, but still have an average monthly rent of $675. Two-bedroom apartments only increased by 7 percent. Their average monthly rent is just slightly higher at $850.
Home prices are also priced well, even after seeing a growth of 17.1 percent over last year. The median home price in Conway is $236,500.
Hot Springs
Known best as a touristy, resort town, Hot Springs has a smaller number of full-time residents, but never feels too empty thanks to all the visitors. At the height of tourist season, Hot Springs has an extremely urban vibe. For those that do decide to call it home all year, you’ve got easy access to the famous springs, plenty of places to hike, boat and fish, great food choices and a low cost of living. Home prices are 15.4 percent below the national average.
Rent is extremely reasonable, even in a town attracting so much business. The average apartment rent in Hot Springs is $751. Home prices have also managed to stay on the lower end. The median home in Hot Springs sells for $179,900, which is down 12.2 percent from last year.
Little Rock
Possibly the densest urban center in Arkansas, Little Rock really feels like a big city. Attracting both families and young professionals, the capital is full of restaurants, shops and parks. This is a perfect city for outdoor enthusiasts, history buffs, foodies and art lovers. Everything comes with housing prices that are 18.6 percent below the national average.
Changing very little over last year, apartment prices in Little Rock have essentially held steady. One-beds are the same, but two-beds are down by one percent when compared to last year. This helps to keep rent within that affordable range when looking at the cost of living in Arkansas. The average rent for a one-bedroom apartment is $804 per month. The average rent for a two-bed comes in at $930 per month.
Housing prices in Little Rock are even less expensive on average than in many other Arkansas cities. Up 17 percent over last year, the median home price in Little Rock is $253,500.
Jonesboro
Essentially a modern college town, the big sell in Jonesboro is Arkansas State University. Most amenities center around the college crowd, although it’s also a hub for agricultural processing. Crops grown nearby include cotton, rice, corn and soybeans. Living here gives you affordable housing wrapped up in a typical small town in the South. Home prices are 28 percent below the national average.
Rental prices in Jonesboro have dropped recently, and one-bedroom apartments are down 30 percent over last year. Two-bedrooms are decreasing more slowly, only down 4 percent over last year. This provides for very reasonable rental averages. A one-bed averages out to $650 per month and a two-bed is $825.
Similar to Conway, the median home price in Jonesboro is $228,000, up 17 percent over last year.
Arkansas food prices
Locals may love a big slice of possum pie for dessert, but when it comes to favorite foods, it’s better if it’s fried. From catfish to pickles, green tomatoes to hushpuppies, frying it up makes it taste better. This most likely means that Arkansas residents go through a lot of bread crumbs, but they do keep the grocery bill pretty low, spending on average between $200 and $233 per month.
Food prices themselves are also on the lower end, keeping below the national average in every city, though some just barely.
- Conway is 13.6 percent below the national average
- Jonesboro is 7.7 percent below the national average
- Little Rock is 6.8 percent below the national average
- Fayetteville is 6.6 percent below the national average
- Hot Springs is 0.6 percent below the national average
Prices may stay high in Hot Springs thanks to all the tourists, but even with costs almost at the national average, you never know which city is going to have the most expensive items. If you need to buy bread, to make some fresh bread crumbs, Conway has the most expensive loaf at $3.78, while Fayetteville has the cheapest at $3.07. When you’re in need of eggs for that fry batter, Little Rock’s dozen will cost the most at $1.89, but Conway’s are the cheapest at $1.57.
Arkansas utility prices
Moderate temperatures almost all year round mean your heater and AC shouldn’t have to work too hard in Arkansas. This can keep the biggest utility price, your energy bill, relatively low. Throughout Arkansas, monthly energy bills range between $147 and $164, and overall prices stick closely below the national average.
- Jonesboro is 6 percent below the national average
- Conway is 5.9 percent below the national average
- Fayetteville is 4.3 percent below the national average
- Hot Springs is 1 percent below the national average
- Little Rock is 0.5 percent below the national average
One partial contributor to decent utility prices, and an overall lower cost of living in Arkansas, could be the state’s production of hydroelectricity. With so many lakes across the state, the construction of dams has proved a great source of hydroelectric power. The biggest, Beaver Dam, generates $4.5 million in revenue from electricity.
Arkansas transportation prices
The cost of living in Arkansas gets a bump up when it comes to transportation prices. This is one of the only categories where numbers jump up above the national average.
- Hot Springs is 16.7 percent below the national average
- Conway is 8.8 percent below the national average
- Jonesboro is 7.9 percent below the national average
- Little Rock is 3.2 percent below the national average
- Fayetteville is 9.2 percent above the national average
Not all cities have public transportation to help bring down the costs associated with owning a vehicle, but some do provide options when you don’t feel like paying for parking.
In Fayetteville, there’s also the Scull Creek Trail. This four-mile paved path goes right through the heart of town. You can easily navigate on foot and avoid struggling to find parking on busy days. You’ll also find plenty of places to bike throughout the state.
Fayetteville Ozark Regional Transit
Operating three routes within Fayetteville, and a few in surrounding areas, Ozark Regional Transit services all of Northwest Arkansas. Buses have free Wi-Fi and all routes within the City of Fayetteville are free.
Fayetteville also has Razorback Transit, a system operated by the University of Arkansas. To ride is free, but service only runs Monday-Friday on class days, while school is in session.
Little Rock METRO
Supporting Little Rock, the Rock Region METRO consists of buses and a streetcar. With 15 bus routes and the blue line for the downtown streetcar, the entire city is pretty well covered.
The METRO Streetcar is free to ride, and a one-way bus fare is $1.35. Passes are available, and a 31-day pass is $36.
Jonesboro JET
With five dedicated routes JET offers busses in every direction through the city. Service on weekdays is pretty consistent, but there’s a separate Saturday schedule that runs from 9 a.m. to 4 p.m.
A one-way fare is $1.25, and passes are available for a single day, seven days and 31 days. A 31-day pass is $30.
Arkansas healthcare prices
Healthcare costs include a variety of doctors. You’ve got visits to your general practitioner and specialists, that annual trip to the eye doctor and your two dentist visits per year. Healthcare also includes any unplanned trips to urgent care, as well as all your medications.
Throughout Arkansas, combined healthcare needs are quite affordable.
- Fayetteville is 24.8 percent below the national average
- Little Rock is 24.7 percent below the national average
- Jonesboro is 21.3 percent below the national average
- Hot Springs is 15.8 percent below the national average
- Conway is 13 percent below the national average
These averages keep any kind of doctor visit relatively low, most not even breaking $100. It could cost as little as $90 in Fayetteville to visit the doctor, but up to $112 in Little Rock. A dentist visit could be as inexpensive as $48.50 in Little Rock, and as high as $83.33 in Conway. Since the least expensive visit isn’t always in the least expensive city, it’s best to check averages everywhere you’re thinking about living.
Arkansas goods and services prices
The cost of living in Arkansas is relatively affordable, but where prices get high are goods and services. This includes all the extras you work into your monthly budget. The things you enjoy doing and want to do, but could do without if money got tight. Some Arkansas cities offer special activities in this category, like soaking in the warm mineral water in Hot Springs, but most goods and services are pretty ordinary.
- Conway is 15.1 percent below the national average
- Fayetteville is 1.4 percent below the national average
- Hot Springs and Jonesboro are 4.8 percent above the national average
- Little Rock is 5.5 percent below the national average
Prices are high overall, but it’s only when looking at the averages of specific goods and services that you can really see what costs are like in any given city.
Based on the chart, Little Rock is only the most expensive city half the time, when it comes to the trip to the salon or to the movies. Hot Springs takes the top spot when it comes to pizza and beer. For the most inexpensive city, Conway only comes in dead last twice, as well. Fayetteville has the least expensive 6-pack, and Hot Springs surprisingly has the least expensive movie ticket.
Taxes in Arkansas
Arkansas has a graduated income tax, which means you pay based on your total income. Rates are as low as zero if you make less than $5,000, and as high as 5.5 percent for those making over $84,500.
When it comes to sales tax, the state has a minimum rate of 6.5 percent. Localities can then add up to an additional 6.125 percent. This means the most you may pay in sales tax is 12.625 percent, or for every $1,000 you spend shopping, $126.25 goes straight to taxes.
- Jonesboro has a sales tax rate of 8.5 percent
- Little Rock has a sales tax rate of 8.625 percent
- Conway has a sales tax rate of 9.125 percent
- Hot Springs has a sales tax rate of 9.5 percent
- Fayetteville has a sales tax rate of 9.75 percent
Across the state of Arkansas, the average sales tax rate is 9.47 percent. Most cities on our list come pretty close to that.
How much do I need to earn to live in Arkansas?
There are a lot of expenses that go into the cost of living in Arkansas, but rent is typically the biggest. Experts say you should spend 30 percent of your annual income on rent, so to know what you can afford, you’ll need to do some math.
You can either plug exact numbers into our rent calculator or make some guesses using estimates. By taking the average rent price in Arkansas, which is $738 per month, you can calculate the minimum amount of income you’d need, $29,520, to ensure you had money left over after paying rent each month.
The next question to ask is how easy it is to make this minimum salary in Arkansas. Given that the average annual salary in the state is $46,500, you’ll most likely have an easy time affording an average apartment. You may even be able to pay for a few upgraded amenities.
Living in Arkansas
Making the move to Arkansas means opening yourself up to experiencing a great Southern state. The natural beauty, variety of lakes and mild weather make the state ideal for those who love being outdoors. The affordability, nightlife and food make Arkansas perfect for just about everyone else.
If you’re considering a change, looking at the cost of living through its components can help you find the perfect city to call home. Which one has already caught your eye?
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com