Considering a move to Arkansas? With its diverse economy, welcoming communities, and scenic regions like Little Rock and Fayetteville, Arkansas offers more than just natural beauty.
The average cost of living in Arkansas remains notably affordable. In fact, it is about 4% below the national average in 2025. Here’s a closer look at what expenses to expect across housing, utilities, and more in Arkansas to help you plan your move confidently.
TL;DR: Average Cost of Living in Arkansas 2025
- Cost-of-living index: ~4% below national average
- Median salary needed for middle-class living: $44,254 annually
- Median household income: $58,700
- Average rent for two-bedroom apartment: $976/month (41.6% lower than US average)
- Median home price: $273,500 (37.5% below national median)
- Average monthly utilities cost:$139 (8% below US average)
- Grocery costs: $1,130/month, ~2.5% of median income
- Transportation: ~19.3% less costly than Texas
- Healthcare annual expense: $9,338
- Childcare: ~$1,014/month (7% lower than Texas)
What Is the Average Cost of Living in Arkansas?
Living comfortably in Arkansas’s varied regions requires an annual salary of about $44,254. Meanwhile, the state’s median household income is near $58,700. Whether you settle near Little Rock, Fayetteville, or the River Valley areas, your living expenses will remain manageable.
Key monthly expenses include:
- Rent: $976 for a two-bedroom apartment statewide
- Groceries: Around $1,130, slightly higher than in Louisiana, on par with Mississippi
- Utilities: Approximately $139 per month, with electricity rates at 13.23¢/kWh
- Transportation: Monthly transit costs under $36, much lower than Texas’s $65
- Childcare: Private preschool averages $1,014, competitive regionally
The average cost of living in Arkansas supports a balanced lifestyle without stretching budgets too thin.
Housing and Rental Market in Arkansas
Arkansas’s housing market offers a clear advantage in affordability. Renting or buying here causes less financial stress than in many other Southern states.
- Average rent for a two-bedroom apartment is $976 monthly, 41.6% below the US average
- Median home sale price: $273,500, about 37.5% less than the national median
Comparatively:
- Oklahoma’s median home price is slightly lower ($260,700), but rents are about 10.2% higher than in Arkansas.
- Mississippi homes run around $262,000, just under Arkansas prices.
- Missouri and Tennessee homes are pricier, about 2.4% and 9.7% above Arkansas respectively.
- Texas stands out with median home prices exceeding $350,000, nearly 28% above those in Arkansas.
Metro areas carry distinct flavors: Little Rock offers urban convenience with affordable options. Fayetteville blends college-town vibrancy with reasonable housing costs. Hot Springs offers scenic affordability.
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Utilities and Other Living Expenses in Arkansas
Utility costs are a major part of monthly bills in Arkansas, and they remain affordable. Residential electricity rates average 13.23¢ per kWh.
Typical monthly utility costs are about $139, which is 8% below the national average.
In comparison:
- Oklahoma charges 9.91¢/kWh, Missouri 12.21¢/kWh, Tennessee 12.91¢/kWh, and Texas 9.03¢/kWh.
- Arkansas utilities cost more than Oklahoma and Texas, but they are competitive overall.
Groceries cost around $1,130 monthly, 7% lower than in Texas and similar to Louisiana and Mississippi.
Transportation costs come in 19.3% lower than in Texas, supported by affordable fuel prices and monthly public transit fees of $35.67.
Healthcare costs average $9,338 per year but may increase soon due to proposed rate hikes.
Income and Job Market Overview in Arkansas
Arkansas’s median household income is around $58,700. To afford a middle-class lifestyle, about $44,254 annually is needed. This creates a well-balanced income-to-cost ratio compared to neighboring states.
Salaries may be a bit lower than in Missouri or Texas, but lower living costs make Arkansas a smart economic choice.
Is the Average Cost of Living in Arkansas Worth It?
Arkansas is an excellent option for those who want to stretch their dollars without giving up quality. Low housing and transportation costs let your paycheck go further. Also, childcare and local amenities remain accessible for families.
Economic growth in cities like Little Rock and Fayetteville expands job options while keeping expenses low.
Regional Insights and Relocation Tips
- Little Rock: Urban core with affordable rentals and growing jobs
- Fayetteville: College town mixing culture and cost-efficiency
- Hot Springs: Beautiful, budget-friendly living options in a scenic setting
Newcomers should assess commute and community resources carefully. Arkansas’s regional variety offers lifestyles for many needs and budgets.
Final Thought on Arkansas’s Average Cost of Living
The average cost of living in Arkansas in 2025 remains one of the most affordable in the South. Housing, utilities, and transportation expenses are lower than in neighboring states like Texas, Tennessee, and Missouri.
Rising healthcare costs pose some challenges, but overall costs remain manageable. Arkansas shines for those prioritizing value and lifestyle balance.
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FAQs About Arkansas’s Average Cost of Living
What is the average rent in Arkansas?
The average rent in Arkansas is around $976 per month for a two-bedroom apartment, making it one of the most affordable in the region.
How much income do I need to live comfortably in Arkansas?
You need an annual income of about $44,254 to maintain a comfortable middle-class lifestyle in Arkansas.
Are Arkansas home prices affordable?
Yes. The median home price in Arkansas is $273,500, which is approximately 37.5% lower than the national median, offering excellent affordability for homebuyers.
How do utilities in Arkansas compare regionally?
Utility costs in Arkansas are about 8% below the US average, though they are slightly higher than those in nearby states like Oklahoma and Texas.
Is Arkansas expensive to live in?
No, Arkansas’s average cost of living is about 4% less than the national average, making it very affordable.
