Arkansas Named #1 Most Affordable State in U.S.

Arkansas has been ranked the most affordable state in the nation by a national publication.

In its latest Best States rankings, U.S. News and World Report named Arkansas as no. 1 on its Affordability section. As part of this ranking, Arkansas was ranked no. 1 for cost of living and no. 2 for housing affordability.

Arkansas’ overall affordability ranking was based on two factors: the Cost of Living Index and the Housing Affordability Index.

The report lists the Cost of Living Index in Arkansas at 86.6, compared to the national index of 100. This Cost of Living Index is a “score reflecting the price levels of goods and services compared with national price levels,” according to U.S. News and World Report, and was based on data from the U.S. Bureau of Economic Analysis.

U.S. News and World Report developed the Housing Affordability Index using U.S. Bureau of Economic Analysis data as a method of “reflecting the affordability of housing compared with the national level.” The index includes rents and “imputed rental value for owner-occupied dwellings,” in addition to other factors.

The Economic Research Institute also ranks Arkansas as the state with the lowest cost of living. According to ERI data, Arkansas’ cost of living is 18 percent below the national average. The ERI assessment is based on the “accumulating cost of food, transportation, health services, rent, utilities, taxes and miscellaneous.”

Individuals and families from around the country are learning about the advantages of living in Arkansas, including its low costs. In 2024, Arkansas was named the no. 1 state for inbound movers in the Atlas Van Lines’ Migration Patterns Study. The study reported that Arkansas had a 65 percent inbound mover rate.