Compared to the rest of the country, Arkansas has a much lower cost of living. Arkansas has the lowest cost of living among all U.S. states according to the US News & World Report 2025 rankings as well as being the top state in affordability. That means that your dollar in Arkansas supports more real spending than it does anywhere else. According to RentCafe, which gets its data from the Council for Community and Economic Research, the cost of living in Arkansas is 11% lower than the national average, fueled primarily by lower-than-average housing costs, food, transportation, and goods and services. Under the leadership of Gov. Sarah Huckabee Sanders, Arkansas has completely eliminated the state sales tax on groceries.

Arkansas' Buyer-Friendly Housing Market

Affordable housing is abundant in Arkansas, and it is one of the most significant contributing factors in the cost-of-living difference. Zillow reports that the median price of homes sold is around $234,667, with the average list price per square foot at $157. As of April 2026, Apartments.com reports the average rent in Arkansas is $967 a month, lower than any border states. And with an effective property tax rate of only 0.55%, Arkansans enjoy some the lowest real-estate property tax rates in the country, with taxes collected locally rather than statewide. 

Necessities Cost Less in Arkansas

In Arkansas, our cost for necessities is low, so you can take advantage of all our state offers without sacrificing affordability. When your dollar goes further, it’s easy to see why the Natural State has such an excellent quality of life.