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.
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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.
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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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Why You and Your IRA May Want to Go Back in Time
This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.
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)
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