Cost of living in Arkansas

Cost of Living in Arkansas

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    Located in the southern US, Arkansas is home to many beautiful landscapes, including mountains, forests, and lakes. This state is widely known for its hot springs, abundant wilderness, and poultry production.

    Living in Arkansas is less expensive compared to the rest of the country. The affordable housing cost and the lowest utility rates make this state an ideal place to call home.

    Are you planning to make a move? Check the Arkansas cost of living calculator and relocate to the state accordingly.

    Cost of Living in Arkansas

    Is Arkansas expensive to live in?

    No, not at all. The cost of living in Arkansas is pretty low, making this US state a less expensive place to live in. Bureau of Economic Analysis suggests that the cost of goods and services in Arkansas is 14.7% less than they do on average nationwide.

    The cost of living in this US state is the fourth-lowest in the country. It has the third-lowest residential electricity prices, affordable housing, and the lowest utility rates, making it an ideal destination for budget-savvy people.

    How much does it cost a month to live in Arkansas?

    An average person requires $729 a month on housing, which is $294 less than the country’s median monthly rent. The monthly rent for one bedroom in Arkansas is about $554 and for five or more bedrooms is $1099.

    According to Best Places, the cost of living index in Arkansas is 79.0, way lower than the national average. The median home cost in this southern US state is about $145,300.

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    Cost of living in Arkansas

    Compared with all other states in the country, Arkansas has the lowest overall cost of living. This state is home to six metropolitan areas and the most expensive is the Little Rock-North, where the cost of goods and services is 3.9% higher than the statewide average but 10.8% lower than the country’s average.

    Find the cost of living in Arkansas here and make an informed decision.

    1. Groceries Prices in Arkansas

    The groceries in Arkansas cost around 92.7, slightly below the national average. The state has a large number of grocery stores, which means you can always find what you’re looking for. Also, the prices are usually very reasonable. Check the grocery prices in different cities of Arkansas here.

    Little Rock95.8
    Fort Smith93.7

    How much do groceries cost in Arkansas?

    According to the data from the US Department of Agriculture, a single adult in Arkansas spends an average of $2,988 on food annually and a family of four spends $8630 on average.

    How much is a loaf of bread in Arkansas?

    A loaf of fresh white bread costs about $0.63 in Arkansas, according to Numbeo.

    2. Cost of Food

    Food is one of the essential components to consider before moving to Arkansas. It has a significant impact on the overall cost of living in the state. However, the data from the US Department of Agriculture represents that the cost of food varies from one city to another. On average, a family of four spends $8630 in Arkansas. However, the nationwide average annual food expenditure is $9354 for a family of four. 

    Food Cost

    Find the cost of different food items in Arkansas here.

    Food ItemPrice
    Chicken Breast$8.36

    What is the average cost of food in Arkansas?

    Before checking out the restaurants in Arkansas, it is essential to know that the average cost of food for an adult in Arkansas is $478. According to, a dinner in a restaurant for two adults in Arkansas costs around $49.8, which is slightly lower than the country’s average.

    3. Price of Utilities Per Month

    According to Best Places, the price of utilities in Arkansas is 95.7, lower than the national average. The cost of living in Little Rock, Arkansas, is $2,832 for a family of four without rent. This southern US state ranks 9 on the utility affordability list, which means that it has the ninth most affordable utilities in the country. The average utility bill in the state is $388.28 per month.

    Utilities Cost

    Find the utility price in Arkansas in the table mentioned below.

    Little Rock95.1
    Fort Smith94.8

    Are utilities expensive in Arkansas?

    No. Arkansas has the lowest utility rates in the country, making it one of the affordable destinations to live in. The data from the Global Energy Insitute claims that the average household in Arkansas spent only $1,892 on energy in 2019, which is around 8.7% below the national average.

    How much do utilities cost?

    The average monthly bills are $89.52 for electricity, $40 for water, $51.04 for internet, and around $107.72 for natural gas.

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    4. Arkansas Healthcare

    Arkansas ranks #42 out of 50 in terms of overall national ranking in healthcare. The state offers affordable health services to the residents so they can enjoy excellent medical facilities without spending much. You can also apply for the state’s Medicaid program if your income qualifies for the same.


    Arkansas is ranked #30 out of 47 states in healthcare affordability. Moreover, the healthcare insurance costs are also lower in this southern US state. The average healthcare cost in Arkansas for a single adult is $3,769 per year, compared to the national average of $4,266.

    What is the average health insurance cost in Arkansas?

    The residents in Arkansas will have to pay an average of $202.99 per person monthly for medical individual health insurance. However, the price may vary and premiums can be lower if an individual has good health.

    Does Arkansas have free healthcare?

    No. Arkansas doesn’t offer free healthcare services, but you can enjoy low-cost health coverage if you are eligible for Arkansas Medicaid Program. The residents can sign up for this affordable health coverage program if their income qualifies.

    5. Arkansas Home Prices

    The housing market is quite inexpensive in Arkansas compared to other US states. According to Best Places, Arkansas’ housing index is 55.7, which is way lower than the national average. The median home cost is $145,300, well below the US average of $291,700.

    House Price

    Find the median home value in the top 6 cities in Arkansas here to get a better idea.

    CityMedian Home Value
    Little Rock$163, 100
    Fort Smith$130,600

    Why is Arkansas Housing So Cheap?

    Wondering Why is a land so cheap in Arkansas? Housing in Arkansas is cheaper due to the low demand, which could be due to low job growth, high crime rate, and low annual salaries.

    Are houses cheaper in Arkansas or Texas?

    The cost of living in Arkansas is 4.3% more expensive than in Texas. However, when it comes to housing, Arkansas has the least median home cost, making it a suitable place to settle. 

    6. Average Rent by Bedroom

    Arkansas has the third-lowest rents in the country, costing an average of $917 a month. However, the rent varies from one city to another. Across the state, around 34.3% of occupied homes are rented, lower than the 36.2% national average. The cost of living in Arkansas for one person is around $1676 with rent and $670 without rent.

    Average Rent by Bedroom

    What is the price of a 1 bedroom apartment in Arkansas?

    The average price of 1 bedroom apartment in downtown Arkansas is $974.

    What is the average cost to rent a house in Arkansas?

    The average cost to rent a house in Arkansas which comprises three bedrooms, is around $2136, according to

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    7. Arkansas Tax Rates

    Each state’s tax code is a multifaceted system and Arkansas is no exception. This southern US state is a relatively tax-friendly state for retirees. It has a 6.50% state sales tax rate and a maximum local sales tax rate of 6.125%. The top individual income tax rate in Arkansas s around 5.5% and the state and the individual income tax collections per capita are about $952.

    Tax Rates

    People living in Arkansas have to pay the top corporate income tax rate of 5.9%. Arkansas stands at 44 in the State Business Tax Climate Index Ranking. The property tax of owner-occupied housing value is 0.64%.

    How much do taxes take out in Arkansas?

    The statewide tax rate in Arkansas is 6.5%. However, people living in the state have to pay other taxes like property tax, corporate tax, etc. Counties and Cities also collect their own sales taxes.

    Are taxes high in Arkansas?

    Yes. Arkansas has a high statewide sales tax rate. All residents and non-residents who receive income from an Arkansas source are required to pay the taxes.

    8. Arkansas Public Transportation

    Arkansas is well-connected by the public transportation system so that residents can easily commute across the state. There are currently eight urbanized transit systems in Arkansas, namely Fort Smith Public Transit, Pine Bluff Transit, Rock Region Metro, Jonesboro Economical Transportation, Hot Springs Intracity Transit, Ozark Regional Transit Authority, etc.

    Public Transportation

    According to, the average transportation cost in Arkansas is $54. 

    How much is a bus ticket to Hot Springs Arkansas?

    The bus ticket to Hot Spring Arkansas costs around $1.25 for an adult, $0.50 for a senior citizen and Medicare Card Holders, and free for preschoolers.

    What is the cheapest transport service in Arkansas?

    The bus is the cheapest and easiest way to commute across the state. Greyhound Bus Company offers an affordable transport service in Arkansas to travel between cities.

    9. Average Cost For Energy & Fuels

    The US state of Arkansas is one of the leading producers of natural gas and a minor producer of petroleum in the country. Coal regained the top spot for generating electricity in Arkansas and is accounted for around 35% of the state’s total electricity. 

    Fuel Cost

    The state is ranked #31, in terms of the most energy-efficient states in the US in 2017 by the American Council for an Energy-Efficient Economy.

    Where is the cheapest gas in Arkansas right now?

    The cheapest gas is available in Little Rock, Arkansas at a price of $3.59.

    Is Gas Cheaper in Arkansas or Oklahoma?

    Gas is available at the cheapest price in Oklahoma compared to Arkansas. Oklahoma has an average gas price of $2.66 per gallon while Arkansas offers regular gas at $2.67 per gallon.

    How much does Energy charge per kWh in Arkansas?

    The energy charges are 10.24 cents/ KWh in residential areas and 9.20 cents/kWh for commercial purposes.

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    10. Miscellaneous Cost

    In addition to the above, you must be mindful of the miscellaneous costs before making a final move. This section includes everything related to leisure and recreation. The state is jam-packed with various activities and you have to pay a specific price to enjoy them. According to Best Places, the miscellaneous index of Arkansas is 93.9, which is lower than the national average of 100.

    Miscellaneous Cost

    Compare the miscellaneous cost in the top 6 cities of Arkansas in the table mentioned below.

    CitiesMiscellaneous Cost
    Little Rock98.9
    Fort Smith94.1

    Cost of living in Arkansas FAQs

    Is it cheaper to live in Arkansas than in California?

    Yes, absolutely. Living in Arkansas is way cheaper than in California. A recent study claims that the cost of living raised in Arkansas is around 33.6% less expensive than in California, making it the best place to call home. Employers in LA, California pay around 25.3% more than the employees in Bentonville, Arkansas. Hence, the cost of living in Los Angeles, CA is 61.3% higher than in Bentonville, AR.

    Also, Arkansas’s cost of living is the 4th lowest in the country.


    That’s all, readers!! We hope our guide will help you understand the cost of living in Arkansas, so you can make an informed decision about moving there. According to, the cost of living in Arkansas is $1676, which is 1.13 times less expensive than the country’s average.

    It has lower-than-average housing and third-lowest electricity passes. Moreover, this US state is tax-friendly for retirees, with an average sales tax rate of 6.5%. Arkansas is one of the beautiful southern states to settle in. So, why wait? Check the best things to do in Rogers, AR, find the cheap land, and move to your new home in Arkansas without spending a fortune. 

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