Arkansas, known as the "The Natural State", is the fourth most affordable state in America with very low housing costs. Here is everything you need to know about the cost of living in the The Natural State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Arkansas for a single person earning the median income of $52,100/year:
Each category shows how Arkansas compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Arkansas.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Arkansas.
The most popular cities for residents and newcomers in Arkansas:
Housing is the single biggest expense in Arkansas, as it is everywhere. The median home price in Arkansas is $195,000, and the median rent for a one-bedroom apartment is $780/month. With a housing cost index of 62, Arkansas housing is 38% cheaper than the national average.
Housing in Arkansas is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Arkansas has a state income tax rate of 4.4%. On the median household income of $52,100, you will pay approximately $2,292/year in state income tax ($191/month). This is below the national average — a tax advantage for Arkansas residents.
The average single person in Arkansas spends approximately $360/month on groceries. A family of four can expect to spend $900-$1,080/month. The food cost index of 93 means groceries in Arkansas are 7% below the national average.
Gas prices in Arkansas average $2.9/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,740/year in fuel costs.
Arkansas healthcare costs are 12% below the national average (index: 88). The average annual healthcare cost per person in Arkansas is approximately $5,280 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Arkansas averages $680/month ($8,160/year). This is below the national average, making Arkansas more family-friendly from a financial perspective. Many families in Arkansas find that one parent staying home is more cost-effective when two or more children need daycare.
Arkansas is an excellent choice for anyone prioritizing affordability. Your dollar stretches 16% further here than the national average. The trade-off may include fewer big-city amenities in some areas, but cities like Little Rock and Fayetteville offer a good balance of affordability and quality of life.
See all Arkansas financial calculators:
Arkansas (AR) has a cost of living index of 84, meaning it is 16% cheaper than the US average. Housing is the biggest factor with an index of 62. The median rent is $780/month and the median home price is $195,000. Arkansas ranks #2 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Arkansas is approximately $67,730/year ($5,644/month). For a family of four, aim for $114,620/year. This covers housing at 30% of income, groceries ($360/mo), transportation, healthcare, and a 15% savings rate. The median household income in Arkansas is $52,100.
The median rent for a one-bedroom apartment in Arkansas is approximately $780/month. A two-bedroom averages $1,053/month. Rent varies significantly by city: Little Rock, Fayetteville, Fort Smith are the most popular metro areas. Housing in Arkansas is affordable compared to the national average.
Arkansas is an excellent choice for affordability. With a cost of living 16% below the national average and median rent of just $780/month, your money goes significantly further here. Top cities include Little Rock, Fayetteville, Fort Smith.
The most affordable areas in Arkansas are typically smaller cities and rural areas away from the major metros. Within Arkansas, costs can vary 20-40% between the most expensive city (Little Rock metro) and more affordable areas. Springdale and Jonesboro tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Arkansas for a single person is approximately $360 ($900 for a family of four). Arkansas food costs are 7% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Arkansas is approximately $130. Total utilities (electric, gas, water, internet) average $286/month. Arkansas utilities are 3% below the national average. Utility costs are manageable for most households.
Arkansas has a state income tax rate of 4.4%. On the median household income of $52,100, that is approximately $2,292/year in state income tax. This is below the national average — a tax advantage.