California: The Best Affordable Places to Live in 2025
Best Affordable Places to Live in California in 2025
(Last Updated – 02/2025)
Frankly, when it comes to affordable places to live, California as a whole does not readily spring to mind. In fact, according to MERIC data from 2024, it’s the third most expensive place to live in the United States — only surpassed by Hawaii and Massachusetts. And the tragic wildfires in early 2025 have caused housing costs in parts of the Los Angeles area to skyrocket.
Along with the higher-than-average overall cost of living, some California residents see state income tax rates as high as 12.3%. Basically, in a state so beautiful, everything seems to cost just a little bit more.
Still, it is possible to find an affordable way to live here. Particularly if you know which cities to aim for.
Best Places to Live in California
From its gorgeous coastlines to its fertile central valley, California has plenty to offer, no matter where you land. In some places, it’s surprisingly affordable, with a cost of living comparable to the American average.
Below, you’ll find our breakdown of the best (read: most affordable) cities in California, whether you’re a young adult just getting started or a retiree looking to live out your golden years. And don’t worry: We’ve included all the most pertinent data.
💡 Quick Tip: Traditionally, mortgage lenders like to see a 20% down payment. But some lenders, such as SoFi, allow home mortgage loans with as little as 3%* down for qualifying first-time homebuyers.
Best Affordable Places to Live in California
If you’ve got your mind on your money and your money on your mind, guess what? You can still make it work in California. That’s why it’s a magnet for immigrants from Asia and elsewhere in the Americas. As a result, you’ll find true cultural diversity here, as evidenced by the events calendar and the restaurant scene.
Below are the best cities to consider for budget-conscious Golden State hopefuls. If you’re a newbie homebuyer, use a first-time homebuyer guide to learn more about the process before you start shopping.
1. Bakersfield
Photo credit: iStock/halbergman
Just a couple of hours north of Los Angeles, Bakersfield is so much more than a Central Valley suburb. For one thing, it’s been a pioneer city in the world of country music, with artists like Buck Owens and Merle Haggard championing the Bakersfield sound. The region produces 80% of the nation’s carrots, along with garlic, tomatoes, and many other vegetable crops. And get this: The rapidly growing city is a low-key hub for Basque cuisine and culture.
Best of all, it’s an awesome spot for those looking to live an affordable life on the west coast, with a cost of living slightly above the national median and well below California’s state average cost-of-living index of 145. Bakersfield also boasts one of the most reasonable housing markets in California, even for first-time buyers.
Population: 413,381
Median Household Income: $77,397
Cost of Living: 109% of U.S. average
Median Rent Price: $1,924
Home Price-to-Income Ratio: 5.04
Average Property Tax: 0.96%
2. Modesto
Photo credit: iStock/MattGush
Farmers markets, art galleries, and a range of festivals make Modesto an excellent choice for those hoping to make a California life with their wallets in mind. And with a population of more than 200,000, you’ll find no shortage of peers to celebrate alongside.
Star Wars creator George Lucas hails from Modesto. The city is also known for its classic car culture, 150 miles of biking and hiking trails, the Gallo Winery (one of the world’s largest), and proximity to one of Yosemite National Park’s entrances.
Population: 218,915
Median Household Income: $77,899
Cost of Living: 111% of U.S. average
Median Rent Price: $1,875
Home Price-to-Income Ratio: 5.7
Average Property Tax: 0.73%
3. Chico
Photo credit: iStock/aguilar3137
Home to Chico State, one of the more popular options in the California State University system, Chico has plenty to offer for those beyond their college years, too. It’s the perfect combination of city to-dos and outdoor landscapes that offer plenty of recreational opportunities — and the cost of living is among the lowest in the state.
Population: 101,301
Median Household Income: $67,929
Cost of Living: 97% of U.S. average
Median Rent Price: $1,561
Home Price-to-Income Ratio: 6.66
Average Property Tax: 0.70%
Recommended: How to Qualify for a Mortgage: 9 Tips
Best Places to Live in California for Families
If you’re bringing kiddos into this world, your metrics for what makes a great city are just a little bit different. Here are the best options in California for families.
1. Chula Vista
Photo credit: iStock/DenisTangneyJr
For southern California families, it’s hard to do better than Chula Vista, a San Diego-area community that offers plenty of kid-friendly activities at a lower-than-San-Diego price. The Lemon Capital boasts some of the best year-round weather on the planet, and attractions like Sesame Place, Eucalyptus Skateboard Park, and the U.S. Olympic Training Center. A new Gaylord Pacific Hotel and Convention Center opening in 2025 is bringing jobs and tourists to the area. Homes here are valued at well above the national average, but prices have leveled off recently and the area is still priced below San Diego’s $1 million level.
Population: 274,333
Median Household Income: $105,173
Cost of Living: 141% of U.S. average
Average Rent Price: $3,113
Home Price-to-Income Ratio: 8.03
Average Property Tax: 0.72%
2. Clovis
Photo credit: iStock/MattGush
A suburb of Fresno, Clovis is a Central Valley town that offers some of the most affordable California living. Families looking for a home in California will appreciate its highly ranked public schools. The area is within a 90-minute drive of three national parks, and boasts 300 days of sunshine a year.
Population: 125,826
Median Household Income: $100,360
Cost of Living: 126% of U.S. average
Average Rent Price: $2,350
Home Price-to-Income Ratio: 5.06
Average Property Tax: 0.77%
3. Elk Grove
Photo credit: iStock/MattGush
The best Sacramento suburb for those hoping to start a family, Elk Grove boasts plenty of city parks, family-friendly events, and easy access to the big-city amenities of the nearby capital. And of course, its housing market remains relatively affordable compared to other California cities. To compete more effectively in the market when home-shopping, think about going through the mortgage preapproval process before your search heats up.
Population: 178,444
Median Household Income: $122,229
Cost of Living: 119% of U.S. average
Average Rent Price: $2,800
Home Price-to-Income Ratio: 5.28
Average Property Tax: 0.77%
Best Places to Live in California for Young Adults
From job opportunities to dating opportunities and things to do, there’s some incredible city life to be had in California — and it doesn’t have to mean going into debt. Here are California’s best spots for young adults.
1. Sacramento
Photo credit: iStock/miroslav_1
California’s state capital makes our list, thanks to its ample population size and relatively low cost of living. Plus, the city offers a wide array of nightlife opportunities for those looking to mix and mingle. The City of Trees has become known for its “farm-to-fork” food scene and high culture, including opera, ballet, and several theater companies. Though the cost of living here is above the U.S. average, it is below the state’s composite index of 145, making it one of the more affordable big cities in the state.
Population: 526,384
Median Household Income: $83,753
Cost of Living: 130% of U.S. average
Average Rent Price: $1,950
Home Price-to-Income Ratio: 5.70
Average Property Tax: 0.77%
2. Stockton
Photo credit: iStock/DenisTangneyJr
Perfect for the 20-40 crowd who wants to be Bay Area–adjacent without being in the (pricey) Bay Area, Stockton offers a great local art scene and an up-and-coming community that’s just looking to be shaped by a new generation. Plus, its relatively affordable housing market means those getting established can put a roof over their heads without breaking the bank.
Population: 319,543
Median Household Income: $76,851
Average Rent Price: $1,995
Home Price-to-Income Ratio: 5.69
Average Property Tax: 0.77%
3. Santa Rosa
Photo credit: iStock/Gerald Corsi
City amenities? Check. Wine country? Check. Gorgeous outdoor pursuits available at every turn? You know it. While it’s not the very cheapest option on the map, Santa Rosa is perfect for young adults looking to live a refined lifestyle surrounded by like-minded peers. And it’s all within a stone’s throw of the Bay Area. For those who are ready to buy, property taxes are lower than in many other California metros.
Population: 175,845
Median Household Income: $97,410
Cost of Living: 131% of U.S. average
Average Rent Price: $2,438
Home Price-to-Income Ratio: 7.39
Average Property Tax: 0.71%
Best Places to Live in California for Retirees
For those ready to slow down and enjoy their golden years, California has many picturesque small towns to offer — plenty of which also provide a relatively affordable price point. Here are a few to consider.
1. Laguna Woods
A whole city specifically set aside for the retirement community, Laguna Woods is Southern California done right, with plenty of planned activities, senior resources, nearby wilderness, and more. If you’re a retiree in California, you might as well take a look at this very special place. Although the cost of living in nearby Laguna Hills is 141% of the U.S. average and rents can be high in Laguna Woods, an average home value around $450,000 signals that there are relatively affordable options for retirees (or soon-to-be retirees) who plan to purchase a home or condo.
Population: 16,998
Median Household Income: $60,235
Cost of Living: N.A.
Average Rent Price: $3,000
Home Price-to-Income Ratio: 7.50
Average Property Tax: 0.68%
Recommended: Different Types of Home Mortgages
2. Chico
Photo credit: iStock/mtilghma
This Central Valley community makes the list again for its combination of outdoor access and city to-dos backed up by a relatively low cost of living. Plus, the atmosphere here is far less rushed than in cities like LA or SF, and more than 14% of the population is aged 65 or over.
Population: 101,301
Median Household Income: $67,929
Cost of Living: 97% of U.S. average
Average Rent Price: $1,561
Home Price-to-Income Ratio: 6.66
Average Property Tax: 0.70%
3. Palm Springs
Photo credit: iStock/Try Media
We couldn’t write a “best places to retire in California” list without including Palm Springs — even if it’s not the most affordable city on the list. With a median age over 56, Palm Springs is the quintessential retirement community, complete with beautiful warm days all winter long. The long-time resort area features natural hot springs, spas, golf courses, and a lively, walkable downtown. The Palm Springs Aerial Tramway takes passengers from the desert floor to the mountain top (elevation 8,500 feet) for stunning views.
Population: 45,218
Median Household Income: $71,979
Cost of Living: 122% of U.S. average
Average Rent Price: $3,298
Home Price-to-Income Ratio: 8.82
Average Property Tax: .86%
Best Places to Live in California Near the Beach
From mountains to valleys to deserts and more, California has it all — but the state’s name probably brings to mind the beach. Here are the best beach towns to consider in the Golden State for those who don’t want to blow their budget.
1. Eureka
Photo credit: iStock/dlinca
If you’re willing to live a somewhat different beach life — think slower, smaller, and chillier — Eureka offers a great opportunity. This northern California coastal town is small but mighty, and just as close to the sandy shore as it is the redwood forests. The people here are quick to identify themselves as northern Californians — a different breed entirely from the rest of the state. The vibe is fiercely independent, as demonstrated by the many small artisanal businesses and unique annual events like the December Truckers’ Parade and Kinetic Grand Championship (a three-day race of human-powered kinetic sculptures) in May.
Population: 25,734
Median Household Income: $60,253
Cost of Living: 111% of U.S. average
Median Rent Price: $1,690
Home Price-to-Income Ratio: 6.8
Average Property Tax: 0.68%
2. Oceanside
Photo credit: iStock/Jenelle Jacks
Perfectly situated about halfway between LA and San Diego, Oceanside is a southern California beach town with a slightly slower pace. With more than 100,000 neighbors, it’s certainly not small, but it’s less… intense than other coastal communities in the area. ts cost of living is about average for California, but lower than many other beach areas.
Population: 170,020
Median Household Income: $93,724
Cost of Living: 141% of U.S. average
Median Rent Price: $3,250
Home Price-to-Income Ratio: 9.2
Average Property Tax: 0.72%
3. Crescent City
Photo credit: iStock/A-Tom
Another option for those willing to weather some beachside cold, Crescent City is a northern California gem that’s considered a gateway town to the nearby Redwood National and State parks. With a population around 6,000, the community is intimate — and importantly, affordable by California standards.
Population: 5,611
Median Household Income: $41,131
Cost of living: 108% of U.S. average
Average Rent Price: $1,500
Home Price-to-Income Ratio: 8.7
Average Property Tax: 0.65%
The Takeaway
While California’s not a cheap place to live by any stretch of the imagination, there are plenty of affordable cities to consider if you know where to look. Our top picks include Chula Vista and Laguna Woods in the south, Sacramento in the Central Valley, and Eureka in the north. Bakersfield, in the San Joaquin Valley, takes the top spot.
Before you settle down, be sure to investigate such factors as job prospects, entertainment, and commuting time. Fortunately, California offers some affordable towns with plenty to offer for those looking to purchase a home.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
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FAQ
Where is the cheapest place to live in California 2025?
While some smaller towns may be even more affordable, per our data, Bakersfield, California has the lowest cost of living.
What is the cost of living in California 2025?
California as a whole has a cost of living some 45% higher than the rest of the United States on average.
What salary can you live comfortably on in California?
This depends on where you live — and what you consider “comfortable”! In many California cities considered affordable, the median household income remains around $80,000.
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Best Affordable Places to Live in Arkansas in 2025
Best Affordable Places to Live in Arkansas in 2025
(Last Updated – 02/2025)
Arkansas is known for its natural beauty and Southern hospitality, but it’s also one of the most affordable places to live in the United States, especially when it comes to housing. Depending on where you decide to settle down, you can enjoy city, country, mountain, or lake life — or something in between. And the economy is as diverse as the landscape, ranging from agriculture to aerospace and defense.
You’ll also find it’s easy to fill your free time. There’s plenty to do in the Natural State, whether you’re ready to spend a day fishing or hiking in the great outdoors, checking out a museum or a theater performance, shopping, dining, or just hanging out in the neighborhood.
Best Places to Live in Arkansas
Looking for that special place where you can live your best life? No matter what age and stage of life you’re in — whether you’re just getting into your first home or you’re ready to retire — you’ll likely be able to find something that suits your needs in Arkansas. Here’s our roundup of some of the best places in Arkansas to live.
Best Affordable Places to Live in Arkansas
One of the big pluses of living in Arkansas is that almost anywhere you choose to buy or rent, the cost can be affordable. These five cities are all known for their quality of life, but they also have affordable home prices, so you won’t have to blow your budget.
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1. Little Rock
Photo credit: iStock/Sean Pavone
Little Rock is Arkansas’ capital and its most-populated city, so you can expect to find a wide range of activities, amenities, and job opportunities. The city has several museums dedicated to its rich history, and there are plenty of places where you can see live music performances. Or you can head outside and explore Little Rock’s many parks and trails.
Population: 203,842
Median Household Income: $60,583
Cost of Living: 85% of U.S. average
Median Rent Price: $1,067
Home Price-to-Income Ratio: 3.4
Average Property Tax: 0.81% of property value
Housing Affordability: The average home value in Little Rock has gone up a bit over the past year and is comparable to the median for the state, but is still almost $100,000 under the national average.
2. Bryant
Bryant is known for its small-town charm, and many residents find its location — close to Little Rock’s big-city amenities but also some of the state’s most popular parks — is just right.
Population: 21,877
Median Household Income: $83,219
Cost of Living: 83% of U.S. average
Median Rent Price: $973
Home Price-to-Income Ratio: 2.9
Average Property Tax: 0.659%
Housing Affordability: The average home value is up a bit in Bryant, year over year, and the rental market is warm, but the home price-to-income ratio shows costs are still in the healthy range. If you’re looking to buy in Bryant, go through the mortgage preapproval process to get a sense of what your budget can bear and what type of mortgage terms you might be eligible for.
3. Lowell
Lowell is located in the far northwest corner of the state, in the Ozark Mountains. Though it still has a bit of a rural feel, and the landscape is diverse and scenic, it’s also a growing city, and the region offers lots of shopping, dining, and entertainment options.
Population: 11,466
Median Household Income: $92,986
Cost of Living: 87% of U.S. average
Median Rent Price: $1,080
Home Price-to-Income Ratio: 3.7
Average Property Tax: 0.631%
Housing Affordability: The average home value in Lowell is higher than in some other Arkansas locations, but it’s still well below the national average. Rent prices are up year over year, as Lowell’s rental market is heating up.
Recommended: Home Loan Help Center
Best Places to Live in Arkansas for Families
Families looking for easy access to shopping, dining, and activities for kids may find these three cities are a good fit.
1. Centerton
Photo credit: Wikimedia Commons/Brandonrush , Creative Commons CC0 1.0 Universal
Every member of the family should be able to find something to like about Centerton, with its mountain-biking trails and golfing, shopping and dining, many parks, and even a city pool. Parents also appreciate the city’s good schools. And home prices in Centerton tend to be more affordable than in nearby Bentonville and other popular cities in this area.
Population: 23,953
Median Household Income: $112,920
Cost of Living: 85% of U.S. average
Median Rent Price: $1,436
Home Price-to-Income Ratio: 3.0
Average Property Tax: 0.631%
Housing Affordability: The average home value in Centerton is up year over year, but the home price-to-income ratio shows that costs are still manageable for most residents. The median rent price is also up, and the rental market is still warm.
2. Rogers
Photo credit: iStock/Michael Warren
Rogers, home of the very first Walmart store, is another family-friendly city in the fast-growing Northwest Arkansas region. Along with good shopping and dining, Rogers offers several unique experiences for kids and parents: They can cheer for the Double-A Northwest Arkansas Naturals baseball team at their downtown stadium. They can visit the Daisy Airgun Museum and the Arkansas Air & Military Museum. And they can enjoy live concerts at the Walmart Arkansas Music Pavilion.
Population: 74,035
Median Household Income: $82,993
Cost of Living: 88% of U.S. average
Median Rent Price: $1,182
Home Price-to-Income Ratio: 4.3
Average Property Tax: 0.63%
Housing Affordability: The average home value in Rogers rose in the past year but is still lower than the average home value nationwide. Rent prices are down from last year, reflecting the cool rental market.
3. Bentonville
Photo credit: iStock/Larry Fleury
Bentonville is at or near the top of every “best of Arkansas” list for many reasons. Besides enjoying the beautiful mountain views, you’ll find there’s a lot for kids and adults to do in this growing city. And parents will be drawn to the well-regarded schools. Home costs are higher in Bentonville than in many other areas of the state, but the overall cost of living is lower than the U.S. average.
Population: 59,471
Median Household Income: $108,465
Cost of Living: 87% of U.S. average
Median Rent Price: $1,238
Home Price-to-Income Ratio: 4.3
Average Property Tax: 0.631%
Housing Affordability: Home values are up in Bentonville, and the current price-to-income ratio is creeping up. While rents are up year over year, the market is currently cooling.
Best Places to Live in Arkansas for Young Adults
Hoping to find a city with a thriving job market, a low cost of living, and fun things to do in your free time? Here are five locations that may offer the lifestyle you’re looking for.
1. Fort Smith
Photo credit: iStock/DenisTangneyJr
Fort Smith embraces its history as a former military post in a frontier town, and the military still has a strong presence there. The city also is known for its popular farmers market, eclectic dining scene, and a wide range of outdoor activities.
Population: 89,770
Median Household Income: $52,692
Cost of Living: 75% of U.S. average
Median Rent Price: $852
Home Price-to-Income Ratio: 3.37
Average Property Tax: 0.68%
Housing Affordability: The average home value and median rent price are both lower in Fort Smith than in most locations in the state. Lower home values may help you find a home that fits your budget, which may make it easier to qualify for a mortgage.
2. Jonesboro
Photo credit: iStock/BOB WESTON
Jonesboro is another fun college town, with many activities centered around Arkansas State University. There’s also plenty to do outdoors, including hiking, cycling, fishing, and boating. And the city has a diverse and thriving job market.
Population: 80,650
Median Household Income: $52,559
Cost of Living: 83% of U.S. average
Median Rent Price: $926
Home Price-to-Income Ratio: 4.0
Average Property Tax: 0.60%
Housing Affordability: If affordability is on your list of “must-haves,” Jonesboro is worth checking out. The average home value is up a wee bit year over year, but costs are still lower than the state average. Rent prices were up year over year, but the market is cooling off.
3. Farmington
Picturesque Farmington sits in a valley with views of the Boston Mountains, which are part of the Ozarks. The city is just a short drive to Fayetteville (whether for work or football), but it also has its own popular restaurants and activities, and a lovely downtown district.
Population: 9,761
Median Household Income: $88,541
Cost of Living: 84% of U.S. average
Median Rent Price: $1,223
Home Price-to-Income Ratio: 3.6
Average Property Tax: 0.59%
Housing Affordability: Home and rental costs have both gone up in Farmington over the past year, but home values are still significantly lower than the national average. If you’re shopping for your first home, make sure you understand the difference between mortgage prequalification and preapproval.
Best Places to Live in Arkansas for Retirees
These five Arkansas cities have a lot to offer, whether you’re hoping to ramp things up in retirement or slow things down.
1. Hot Springs
Photo credit: iStock/Sean Pavone
Hot Springs’ charm and manageable cost of living would make it a good place for just about anyone to settle down. But the city’s natural thermal springs and its focus on wellness may be especially appealing to retirees.
Population: 37,994
Median Household Income: $69,953
Cost of Living: 86% of U.S. average
Median Rent Price: $1,167
Home Price-to-Income Ratio: 3.4
Average Property Tax: 0.53%
Housing Affordability: Home prices rose steadily in Hot Springs during the pandemic before flattening out. The average home value is still higher than average for the state but well below the U.S. average. Understanding the different types of mortgage loans available to you can help you keep your options open. Rent prices are down over the past year, and the rental market is expected to continue trending downward.
2. Bella Vista
Photo credit: iStock/Wirestock
Bella Vista started out as a resort town and retirement village in the foothills of the Ozarks, near the Missouri border. And though it became a full-fledged city in 2008, it still has a laid-back, relaxing vibe. Besides its lakes and golf courses, it is also known for its biking trails and, of course, the beautiful views that inspired the city’s name. (If you’re interested in the region, but open to cities in other nearby states, you can check out the cost of living by state for each.)
Population: 32,368
Median Household Income: $85,932
Cost of Living: 86% of U.S. average
Median Rent Price: $1,316
Home Price-to-Income Ratio: 4.0
Average Property Tax: 0.63%
Housing Affordability: The average home value in Bella Vista is higher than in some other Arkansas cities, but prices seem to be stabilizing. And the average home value is still under the U.S. average. Rents have seen ups and downs in recent years, but the market outlook is currently cool.
3. Arkadelphia
Arkadelphia, also known as “the Delph,” is a welcoming city with plenty for retirees to enjoy, including an arts center where locals can display their art and a twice-a-week seasonal farmers market. It’s also home to two universities.
Population: 10,255
Median Household Income: $42,430
Cost of Living: 82% of U.S. average
Median Rent Price: $741
Home Price-to-Income Ratio: 4.0
Average Property Tax: 0.61%
Housing Affordability: The rental market is tight in Arkadelphia, but rents are still notably low. The average home value is up, but it is still much lower than the average for the state.
💡 Quick Tip: If you refinance your mortgage and shorten your loan term, you could save a substantial amount in interest over the lifetime of the loan.
Best Places to Live in Arkansas Near the Water
Keep these locations in mind if a home on the water, near the water, or with a water view is one of your house-hunting priorities.
1. Russellville
Photo credit: iStock/Michael Dean Shelton
Though Russellville is a popular tourist destination (thanks to its proximity to beautiful Lake Dardanelle and four state parks), it’s also a fun place to live, with an annual fall festival, a Center for the Arts that hosts concerts and theater productions, and the Centerville Dragway for racing fans.
Population: 29,338
Median Household Income: $48,708
Cost of Living: 78% of U.S. average
Median Rent Price: $835
Home Price-to-Income Ratio: 4.1
Average Property Tax: 0.59%
Housing Affordability: The average home value in Russellville is up year over year, continuing their post-pandemic trend. Rentals have cooled considerably over the last year, and look to remain quite affordable.
2. Siloam Springs
Photo credit: iStock/Wirestock
Siloam Springs is a growing city with something for everyone, including a revitalized downtown, historic sites, and lots of outdoor activities. Adventure seekers can enjoy Siloam Springs Kayak Park on the Illinois River or the downhill cycling trails at City Lake.
Population: 19,336
Median Household Income: $65,725
Cost of Living: 88% of U.S. average
Median Rent Price: $941
Home Price-to-Income Ratio: 4.1
Average Property Tax: 0.63%
Housing Affordability: The average home value in Siloam Springs is up year over year, and higher than the average value for the state, but it’s lower than the U.S. average. While the median rent is down, the rental market is hot hot hot.
3. Greers Ferry
Photo credit: Wikimedia Commons/Brandonrush , Creative Commons Attribution-ShareAlike 4.0 International
The tiny city of Greers Ferry is located on Greers Ferry Lake, a 40,000-acre reservoir that offers fishing, boating, diving, and waterskiing — and is a national model for environmental cleanliness. The city is known primarily as a resort town, but the great scenery and local amenities could make it an appealing location for retirees — or anyone looking for a relaxing, outdoorsy life.
Population: 842
Median Household Income: $49,917
Cost of Living: 83% of U.S. average
Median Rent Price: $833
Home Price-to-Income Ratio: 5.0
Average Property Tax: 0.46%
Housing Affordability: The rental market is very tight in Greers Ferry, with only 1 available rental in early 2025. As a result, the average rent is hard to pin down, as it fluctuates between $750 and $1300. The average home value is up year over year, and is $50K higher than the state average — but it’s still well below the national average.
The Takeaway
Arkansas has something for just about everyone, whether you’re looking for a big (but not too big) city, a suburb with plenty for the kids to do, or a tight-knit and charming small town. And because the overall cost of living, and the cost of housing specifically, is lower than in most states, Arkansas can be an attractive option for families, retirees, and young adults just starting out.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
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FAQ
What is the most affordable city in Arkansas?
Some of the most affordable cities in Arkansas are Bentonville, Fort Smith, and Arkadelphia, although there are many affordable cities in Arkansas that are worth checking out.
What is the cost of living in Arkansas?
The cost of living in Arkansas is 17% lower than the U.S. average, according to the most recent data from the MERIC Index, which ranks the cost of living by state. (Currently, Arkansas is ranked lowest in the U.S.)
How much do you need to earn to live comfortably in Arkansas?
The amount you’ll need to live comfortably in Arkansas depends on your definition of “comfort” and the size of your family. According to the online Living Wage calculator provided by the Massachusetts Institute of Technology, the living wage for an individual with no children in Arkansas is currently $40,540 per year before taxes. For a couple with two children and just one parent working, a comfortable living wage would be $75,701 per year before taxes.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
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SOHL-Q125-083
Why You and Your IRA May Want to Go Back in Time
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There’s an old adage about saving and investing: The best time to start was yesterday. The second best is today. Well, when it comes to your IRA, you can do both.
Here’s how. Unlike employer-provided retirement accounts like 401(k)s, IRAs are individual retirement arrangements, so in a sense, the timing is between you and the IRS. Since you don’t file your 2024 taxes until 2025, you actually get until the filing deadline — April 15 — to make 2024 contributions. You can even start an IRA now for 2024.
But why would you want to mark any of your contributions down for 2024 versus 2025?
A few reasons. First off, there are annual limits to what you can save in any tax-advantaged retirement account. For IRAs, the cap for both 2024 and 2025 is $7,000 each year, or $8,000 if you’re 50 or older. That means anything you can mark as a 2024 IRA contribution frees up more room to save toward this year’s limits.
Second, if you have a traditional IRA, you may be able to deduct those 2024 contributions from your income, lowering your tax burden. Your contributions are fully deductible unless you or a spouse are covered by a retirement plan at work and you earn over a certain amount. (If you’ve already filed your 2024 tax return, you can amend it.)
Third, IRAs and other long-term investment vehicles let you leverage the power of compound growth, giving your contributions and any earnings from those contributions time to grow. If, for example, you saved $7,000 a year for 20 years and your investments had a 6% annual return, you’d end up with about $257,000, including earnings of roughly $117,000. Not too shabby.
(If you have or open an IRA with SoFi, you’ll also get a nice little reward — a 1% match on contributions made by April 15.)
So what? Maximizing tax-advantaged retirement accounts is one of the best ways to save for your future. And over half of Americans worry they won’t have enough saved by their retirement, according to the National Institute on Retirement Security.
If your employer offers a 401(k) plan with matching contributions, it’s best to save there first. You can set aside a lot more, and the match is free money. Otherwise, an IRA offers many of the same benefits, but with more flexible timing.
Related Reading
• How to Choose an IRA Provider (Experian)
• Types of Retirement Plans and Which to Consider (SoFi)
• Can Americans Be Saving Too Much for Retirement? (NewsNation)
Image: Tim Paulawitz/iStock
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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