(Last Updated – September 3,2025)

Massachusetts is known for its natural beauty, leading educational and health care institutions, and of course, the many historic sites located throughout the state. And if you’re a sports fan, you’ll appreciate the state’s pro teams, including the Red Sox, the Bruins, the Celtics, and the Patriots. Whether you prefer the laid-back coastal vibe of Cape Cod, the traditional charm of towns like Concord, or the big-city bustle of Boston, you’ll find plenty to see and do.

Massachusetts is listed as ninth best overall in the U.S. News & World Report “Best States” ranking. But be prepared: You can expect to pay a little more for the pleasure of planting roots in the Bay State. Massachusetts is one of the more expensive places to live in the U.S., especially when it comes to housing.

Is it worth it? Read on to learn more about the cost of living in Massachusetts, and if this New England state might be a good fit for you.

What’s the Average Cost of Living in Massachusetts?

Average Cost of Living in Massachusetts: $69,101 per year

If affordability is a concern for you, the cost of living in Massachusetts could be an obstacle. According to data from the Missouri Economic Research and Information Center (MERIC), Massachusetts comes in as the second highest state in the U.S. for its overall cost of living, behind only Hawaii. That makes it more expensive than any of its neighboring states in the Northeast, based on data gathered in the first quarter of 2025. Even pricey New York and the District of Columbia have a lower cost of living.

What is the cost of living in Massachusetts? According to 2023 data from the Bureau of Economic Analysis, the annual average cost of living in Massachusetts is $69,101. Based on that number, the average monthly cost of living in Massachusetts would be about $5,758. (Your costs will vary: Singles typically spend significantly more per capita than married couples do on categories like food and housing, for example, and less on health care.)

Here’s how costs typically break down into major categories.

Housing Costs in Massachusetts

Average Housing Costs in Massachusetts: $1,459 to $2,659 per month

You can expect housing to be one of your biggest costs no matter where you live, but according to MERIC data, housing costs in Massachusetts are well above the national average. (Only Hawaii ranks higher in the U.S.) That could make buying your first home—or your dream home—a challenge.

Massachusetts has just under three million housing units, according to census data. But whether you rent or buy, you may have a hard time finding a place for less than $1,800 a month. Zillow listed the typical Massachusetts home value at about $658,406 at the end of August 2025, compared with the U.S. average home value of $368,581.

As you consider your budget, it may be helpful to know how housing costs break down. The median monthly mortgage cost in Massachusetts is $2,659. And here’s what monthly housing prices can look like in Massachusetts.

•  Median studio rent: $1,494

•  Median one-bedroom rent: $1,459

•  Median two-bedroom rent: $1,882

•  Median three-bedroom rent: $1,935

•  Median four-bedroom rent: $2,308

•  Median five-bedroom (or more) rent: $2,063

•  Median gross rent: $1,757

Of course, Massachusetts home prices can vary substantially depending on where you are in the state. Here are the typical home prices in 10 major Massachusetts cities, according to Zillow, in August 2025.

Utility Costs in Massachusetts

Average Utility Costs in Massachusetts: $406 per month

Once you have your housing costs covered, there are still the utility bills to consider. Costs can vary based on location, family size, and time of year, but here’s a look at what you can expect to spend monthly in Massachusetts.

Food & Beverage

Average Food & Beverage Costs in Massachusetts: $406 per person, per month

Another ongoing expense is buying groceries. Along with your personal food choices and family size, where you live also can affect how much you’ll spend on food.

The Bureau of Economic Analysis estimates that the average Massachusetts resident’s nonrestaurant food cost is $4,870 annually, or about $406 per month. That means a family of four can expect to spend about $1,624 on groceries each month.

The Council for Community and Economic Research, which ranks the food costs in major American cities, ranked these Massachusetts cities from lowest to highest for their 2024 grocery costs.

Transportation

Average Transportation Cost in Massachusetts: $9,708 to $18,065 per year

Transportation costs can be a budgeting headache, depending on the current price of gas, commute times, and public transportation access.

Although public transportation is a popular option in Massachusetts, most people still drive themselves to and from work. Depending on where you live, that trip can take a while. Massachusetts comes in at 47th in the nation for its commuting time in the U.S. News and World Report current “Best States” rankings. And Boston consistently ranks near the top of the worst commutes in the country.

Family size, including the number of working adults in the home, can also be a factor in how much your transportation costs will be. The following results from MIT’s Living Wage Calculator, with data from the first quarter of 2025, can give you a general idea of what to expect.

Health Care in Massachusetts

Average Health Care Costs in Massachusetts: $11,354 per person, per year

Your health care needs, as well as your insurance coverage, will help determine how much you end up paying for care each year for yourself and your family. But according to the 2023 Bureau of Economic Analysis Personal Consumption Expenditures by State report, the annual cost of health care per Massachusetts resident is $11,354.

Child Care

Average Child Care Costs in Massachusetts: $1,104 to $2,006 or more per child, per month

Having children can have a major impact on your budget, and child care is often one of the biggest monthly expenses for a family. In Massachusetts, the price you pay monthly may depend on where you live, how old your child is, and whether or not you choose home-based family care. Here are the average child care costs in Massachusetts, per the most recent data from CostofChildCare.org.

Eligible families in Massachusetts can apply to the state’s Department of Early Education and Care (EEC) to get help with their costs.

Taxes

Highest Marginal Tax Rate in Massachusetts: 9%

At 9%, Massachusetts’ highest marginal state income tax rate is one of the highest in the U.S., as noted by the Tax Foundation’s map of Top Marginal State Individual Income Tax Rates for 2025. Residents of New York and New Jersey pay more (10.9% and 10.75%, respectively), while neighboring New Hampshire doesn’t have any state income or sales tax.

The state sales tax rate in Massachusetts is 6.25%, which also is among the highest in the U.S. And Massachusetts counties collect an average of 1.04% of a property’s assessed value as property tax per year.

Miscellaneous Costs

Now that we’ve covered the essentials (food, housing, utilities, etc.), let’s change the focus to some fun stuff. Here’s a look at how you might spend some of your discretionary funds as a resident of Massachusetts:

•  Take yourself out to the ballpark. Single-game tickets to a Boston Red Sox game at historic Fenway Park can range in cost from about $35 for an upper-bleacher seat to $425 or more for a seat in a dugout box. Add a cold beverage and a hot dog for about $20, and you’re all set.

•  Explore Boston’s iconic Freedom Trail. The 2.5-mile Freedom Trail leads you to 16 historic sites, including the Bunker Hill Monument, Boston Common, the Old North Church, and Paul Revere’s house. You can walk the trail yourself for free, although there is an admission charge for some sites. Guided “Walk into History” tours cost $17 for adults, $15 for seniors and students, and $8 for children 6-11, with a $1 fee tacked on at every level.

•  Enjoy swimming, hiking, fishing, and more at the picturesque Cape Cod National Seashore. Shopping and dining options are offered in many of the towns around the seashore. Standard entry passes range from $15 to $25, while an annual pass costs $60. Beaches, parking areas, and trails are open year-round. Tickets for a three-hour guided kayak tour of the Nauset Marsh at low tide are $75 for adults and $60 for kids 12 and under.

•  See Boston Harbor from the bay. Check out the city’s skyline and learn about Boston’s (and the nation’s) history during a one-hour narrated sightseeing cruise. Ticket prices vary depending on the cruise you choose, but typically start at about $40 for adults.

•  Have a whale of a time in New Bedford. Learn about whales, whaling, and the ancient art of scrimshaw (intricate designs carved on ivory or bone by whalers) at the New Bedford Whaling Museum. Tickets are $23 for adults, $21 for seniors, $13 for kids, and free for museum members. Add $4 to your ticket price to see a 3D movie.

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How Much Money Do You Need to Live Comfortably in Massachusetts?

We all have different wants and needs, so it’s hard to say exactly how much money you might require to maintain a lifestyle that’s comfortable for you in Massachusetts. But building a life in the Bay State could be expensive compared to the cost of living in other states. U.S. News & World Report ranked Massachusetts 46th for cost of living and 47th for housing affordability in its most recent “Best States” listing. And remember, MERIC ranked Massachusetts as the second highest state in the U.S. for its overall cost of living.

What City Has the Lowest Cost of Living in Massachusetts?

These three cities in Massachusetts all have a low cost of living compared to other cities in the state, according to the Economic Research Institute (ERI):

Springfield

Springfield is popular for its scenic location alongside the Connecticut River and for its many recreational activities. It’s also an economic hub for the region, and is home to several large companies, including MassMutual and Big Y. There’s a zoo, an ice rink, and a symphony hall there, and a Six Flags theme park is located in nearby Agawam. The MassMutual Center hosts concerts, conventions, and other events, and it’s where the American Hockey League’s Springfield Thunderbirds play. Based on the ERI cost of living calculator, Springfield is 12% more expensive than the average city in the U.S. and 14% less expensive than the average city in Massachusetts.

New Bedford

New Bedford leans into its history as a whaling port and seat of Portuguese heritage. You’ll find plenty to explore, from beaches to museums to the Buttonwood Park Zoo. The city is still known for its strong ties to the seafood industry, and tourism is also important to the local economy. Based on the ERI cost of living calculator, New Bedford is 16% more expensive than the national average, and 11% less expensive than the average Massachusetts city.

Fall River

Fall River is another Massachusetts city that makes the most of its waterfront location. You’ll find the world’s largest collection of World War II naval vessels in the city’s Battleship Cove. And you can tour the home (and hunt for ghosts) at the Historic Lizzie Borden House. If you’re a fan of Portuguese cuisine, you’ll likely find the local restaurants serve many of your favorite dishes. Textile and apparel manufacturing, health care, and education are among Fall River’s largest industries. Based on the ERI cost of living calculator, Fall River is 9% more expensive than the national average, and 16% less expensive than the average Massachusetts city.

Helpful Resources for Future Massachusetts Residents

(Last Updated – September 3,2025)

If you’re looking for your own field of dreams in the heartland, Iowa is one of the most affordable places to live in the U.S. The average cost of living in Iowa is $47,833.

While you might love how affordable it is, the Hawkeye State might also win your heart with its easy way of life, low crime rate, vibrant culture, and good schools. Here’s a complete breakdown of how much living in Iowa will cost using the most recent data from Missouri Economic Research and Information Center (MERIC), the Bureau of Economic Analysis, and the U.S. Census.

What’s the Average Cost of Living in Iowa?

Average Cost of Living in Iowa: $47,833 per year

Good news for Iowans: The state has the second lowest cost of living among Midwestern states, beating out neighboring states like Minnesota, Illinois, and Nebraska. It’s also the sixth lowest cost of living in the U.S., according to MERIC data collected in 2024.

As we mentioned, the average cost of living is $47,833 per person, according to the U.S. Bureau of Economic Analysis Cost of Living Index. That translates to average monthly expenses of $3,986 per person.

Here’s what that looks like when broken down by spending category.

Housing Costs in Iowa

Median Housing Costs in Iowa: $741 to $1,494 per month

Relatively low housing costs make Iowa one of the best affordable places in the U.S. Iowa has 1,449,340 housing units and a 71.5% ownership rate, according to data from the U.S. Census Bureau. And as of August 2025, the average home price in Iowa is $233,008, per data compiled by Zillow.

Annual housing costs in Iowa average $7,743. When broken down by housing type and size, the numbers look like this:

•   Median monthly mortgage home loan cost: $1,494

•   Median studio rent: $851

•   Median one-bedroom rent: $741

•   Median two-bedroom rent: $959

•   Median three-bedroom rent: $1,166

•   Median four-bedroom rent: $1,274

•   Median five-bedroom rent: $1,153

•   Median gross rent: $949

These are the average home prices in some of the most popular cities in Iowa, according to Zillow’s August 2025 data.

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Utility Costs in Iowa

Average Utility Costs in Iowa: $331.60 per month

Monthly utility costs in Iowa are generally lower than most other states and can be broken down as follows:

Food & Beverage

Average Food & Beverage Costs in Iowa: $339 per month

Food costs in Iowa can take a bite out of your budget. Unfortunately, they’re slightly higher here than in neighboring Minnesota, Nebraska, and South Dakota. According to the Bureau of Economic Analysis, Iowa’s per-capita annual cost of food and beverages is around $4,067. This breaks down to roughly $339 per month for an individual, or $1,355 per month for a family of four. Keep in mind that figure is just a state average. Costs will vary depending on where you are within Iowa.

The Council for Community and Economic Research tracks grocery costs across the country. Let’s take a look at the comparative grocery costs in Iowa for 2024, from lowest to highest. Note that the number 100 represents the national average.

Transportation

Average Transportation Costs in Iowa: $10,760 to $20,022 per year

Whether you’re planning a weekend trip to Pikes Peak State Park or hitting the Great River Road National Scenic Byway, there’s no shortage of scenic drives in the Hawkeye State. Fortunately, fuel costs are generally in line with what you’d pay in nearby states, though the amount you pay will vary according to the type of car you drive and the size of your family.

Here are estimated monthly costs per MIT’s Living Wage Calculator.

Looking to slash your transportation costs? Iowa has a statewide public transit system, which includes service to rural areas of the state.

Health Care in Iowa

Average Health Care Costs in Iowa: $8,224 per person, per year

The average Iowan pays around $8,224 in health care costs each year, according to the Bureau of Economic Analysis Personal Consumption Expenditures report. This is lower than the national average of $9,130. However, the amount you’ll pay will depend on a number of factors, including your age, medical needs, and the type of health insurance plan you have.

Child Care

Average Child Care Costs in Iowa: $951 to $1,373 per child, per month

As with most states, the amount you pay for child care in Iowa will depend largely on the type of care and your child’s age. For instance, you’ll likely pay more for center-based toddler care than you will for home-based family child care.

Let’s take a look at average childcare costs in Iowa, per CostofChildCare.org.

If you need help finding child care near you, you may want to consider using Iowa Child Care Connect, an online tool the state launched in 2024.

Taxes

Average Taxes in Iowa: 3.8% flat tax

State tax collections per capita in Iowa are $4,034, which ranks 28th in the nation -– solidly in the middle of the pack.

The state of Iowa implemented a flat 3.8% tax on all income levels for 2025, replacing a tiered system. It’s one of the lowest in the nation.

Other tax rates in Iowa are as follows:

•  Effective property tax rate: 1.23%

•  Sales tax for combined state and local taxes: 6.94%

•  Corporate tax rate of 7.1%

Here’s how Iowa stacks up against nearby states.

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Miscellaneous Costs

Once you’ve covered your basic living expenses, you hopefully have enough left over in your budget to enjoy some everyday pleasures. Fortunately, some of Iowa’s biggest attractions are either free or reasonably priced. Take, for example, the “Field of Dreams” Movie Site, which lets you experience the baseball field and farmhouse made famous in the movie for a $20 suggested donation.

Here are some other local favorites worthy of a spot in your entertainment budget:

•  Maquoketa Caves State Park: $0

•  National Mississippi River Museum & Aquarium: $24.95 per adult

•  Greater Des Moines Botanical Garden: $12 per adult

•  All Iowa Lawn Tennis Club: $75 for two players, or $100 for four players for one-hour reservation

How Much Money Do You Need to Live Comfortably in Iowa?

We all have different wants and needs, so it’s hard to say exactly how much money you might require to maintain a lifestyle that’s comfortable for you in Iowa. But in Iowa, the odds are in your favor. The state shines when you compare its affordability to the cost of living in other states. Per MIT’s Living Wage Calculator, a single childless adult would need to make $40,540 a year before taxes to cover expenses in Iowa. U.S. News & World Report’s Best States ranking named Iowa as the most affordable state in 2025. And MERIC’s cost of living data also ranked Iowa as one of the top affordable states, at #10.

Explore the best affordable places in every state.

What City Has the Lowest Cost of Living in Iowa?

These three cities in Iowa all have a low cost of living, according to the Council for Community and Economic Research Cost of Living Index for 2024:

Des Moines

Nearly every city in Iowa can be considered affordable compared to most other states, which can be a good thing if you’re buying your first home. But certain areas are more budget-friendly than others.

Here are three of the lowest-cost cities in the state, according to the Council for Community and Economic Research’s 2024 Cost of Living Index.

Waterloo-Cedar Falls

There’s a lot for homebuyers to like about the Waterloo-Cedar Falls metro area. More than just the Black Hawk County Seat, it’s also a hotbed for jobs in manufacturing, technology, health care, education, and retail. And its varied landscape of prairie, wetland, and natural forest means there’s plenty of outdoor adventures to be enjoyed outside of the daily grind.

Burlington

Outsiders may know Burlington as the home of Snake Alley, a 275-foot-long street so curvaceous, Ripley’s Believe It or Not nicknamed it “Unbelievably Crooked.” But those in the know are also wise to the small town’s charm, much-lower-than-average housing prices, and enviable location along the Mississippi River.

Helpful Resources for Future Iowa Residents

(Last Updated – September 5,2025)

Although the Constitution State is a significant hub for insurance, financial services, and world-class education, it’s just as well known for its many charming historic towns. Situated centrally among many of the east coast’s major metropolises -– think New York City, Boston, and Providence for starters -– Connecticut is home to many people who want access to big-city benefits without giving up the peaceful pleasures of small-town living. And let’s not forget the state’s stunning shoreline!

Along with offering a slightly slower pace of life than its neighboring high-rise communities, Connecticut can also provide a more affordable cost of living. For example, a resident can expect to spend about $4,000 less per year on everyday necessities in Connecticut than in Massachusetts. And its average home values are more than $70,000 lower than New York’s.

Interested in learning more about the cost of living in Connecticut? Let’s dive into the details.

What’s the Average Cost of Living in Connecticut?

Average Cost of Living in Connecticut: $65,128 per year

Connecticut enjoys a relatively affordable cost of living, compared to the cost of living in the U.S. or similar northeastern states.

According to the latest cost of living data from the Missouri Economic Research and Information Center (MERIC), the cost of living in Connecticut is 113.5% of the national average. While that’s still above average, it’s lower than neighboring states Massachusetts (where the cost of living is 145.1% of the national average), New York (124.7%), and New Jersey (114.8%).

So how does that translate into dollars and cents? According to data from the Bureau of Economic Analysis, the per-capita personal consumption expenditures in the state of Connecticut come out to $65,128 per year, per person. (By way of comparison, the national figure is $56,202.)

The breakdown of how those costs are spread across different categories is displayed in the following table.

Again, it’s worth bearing in mind that these figures are per person. That means that the average couple would probably spend double this amount ($130,256) per year, while a family of four could spend up to $260,512 (although specifics will vary based on the age of the household members, lifestyle, and other factors.)

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Housing Costs in Connecticut

Average Housing Cost in Connecticut: $1,037-$2,548 per month

Housing in Connecticut is pricier than the national average — but again, sometimes more affordable than in neighboring states in the northeast. The average home value in the U.S. stands at $368,581 (per Zillow), while the average home value in the state of Connecticut is $437,232, a 3.9% increase over the past year. In New York, the average home value is $509,127, and in Massachusetts $658,406.

These figures can be intimidating if you’re looking into buying your first home. However, there are ways to clear the hurdle. Depending on the type of mortgage loan you can qualify for as a first-time buyer, you may be able to put down as little as 3%. If even that sounds like a lot, down payment assistance programs may also be an option.

Connecticut offers a lot of variety, and home values can vary significantly based on where in the state you’re living. Here are typical home values in five major Connecticut population centers.

Of course, the value of a home isn’t the same as what you pay each month -– often the biggest line item in your budget. The average monthly mortgage payment in Connecticut is $2,555.84. If, however, you’re planning to rent, below are the median monthly rental housing costs, depending on the size of the home.

Median rent in Connecticut by home size:

•  Studio: $1,037

•  One bedroom: $1,283

•  Two bedrooms: $1,535

•  Three bedrooms: $1,696

•  Four bedrooms: $2,094

•  Five or more bedrooms: $2,548

•  Median gross rent: $1,463

Utility Costs in Connecticut

Average Utility Costs in Connecticut: $478 per month

While the cost of housing itself is usually the biggest line item in a family’s budget, the costs associated with keeping that house up and running can also add up. Here are the average utility costs in Connecticut.

Food & Beverage

Average Cost of Food & Beverages in Connecticut: $372.83 per month

Keeping the lights on is good, but keeping your body running is even better. Based on the Bureau of Economic Analysis’s estimate of a yearly grocery cost of $4,474 per person, that means a Connecticut singleton might expect to pay about $372.83 per month at the market. For a family of four, it’s about $1,491.32.

Again, though, specific costs can vary substantially depending on which Connecticut city you live in. The table below lists Connecticut population centers in order of food expense, using an index that represents the cost of groceries as compared to the national average, set at 100.

Transportation

Average Cost of Transportation in Connecticut: $10,168-$18,920 per year

Connecticut isn’t a very big state, and if you live in one of its larger cities — like Stamford, Hartford, or New Haven — public transit options may be robust enough to meet your transportation needs.

But for families who live in smaller towns or regularly help their children commute to school activities, car ownership may be a necessity. It’s convenient to have your own ride, but costs can add up, between the vehicle itself, auto insurance, fuel, and maintenance.

Here are the estimated yearly transportation costs based on the size of your family.

Health Care in Connecticut

Average Cost of Health Care in Connecticut: $10,103 per year

The average Connecticuter can expect to spend $10,103 per year on health care, according to data from the BEA. That comes out to about $841.92 per month, per person.

Again, your overall health care expenditures will vary based on factors like the size and makeup of your family, general health needs, and any medications you may need. This chart shows cost estimates for different family sizes based on the BEA data.

Child Care

Average Cost of Child Care in Connecticut: $1,045-$1,712 per child, per month

You can’t calculate the value of expanding your family, but you can calculate how much care will cost while you’re busy making money to support them. The exact amount you’ll spend depends on how many children you have and what kind of care you’re looking for, but the following figures offer a helpful at-a-glance estimate.

Taxes

Top Marginal Income Tax Rate in Connecticut: 6.99%

When it comes to state-levied income taxes, Connecticut is in the middle: The top marginal income tax rate is 6.99%, which is much higher than the 0% income tax rate assessed by states like Florida and Nevada, but far lower than California’s 13.3% or New York’s 10.9% top brackets.

Connecticut’s average property tax is about 1.48% of the owner-occupied property value, the third highest in the country (behind only Illinois and New Jersey). Specific rates can vary by county.

Finally, a sales tax of 6.35% applies to the sale, lease, or rental of most goods in the state, including digital goods.

Miscellaneous Costs

Money pays for the day-to-day necessities of life — but it’s there to have fun with, too. Here are the costs of a few classic Connecticut attractions.

•  Tickets to the Mystic Aquarium: $34+ per adult; $26+ per child aged 3-13 (pricing is dynamic)

•  Tour of Mark Twain’s Childhood Home: $14 per adult, $6 per child aged 6-17

•  Large hot lobster roll at Captain Scott’s Lobster Dock in New London: $29.95

There are also plenty of wonderful things to do and explore in the state that are totally free and open to the public, like the Yale University campus and its art gallery.

How Much Money Do You Need to Live Comfortably in Connecticut?

“Comfortable” is hard to pin down. For some people, comfort can be as simple as a soft place to land and a regular hot meal at home. For others, comfort means going out to eat, living in a luxurious home or apartment, and being able to spend money on travel and entertainment.

Based on the BEA personal expenditure data, the average Connecticuter can expect to spend about $65,128 per year — which suggests that you’d want to earn a bit more than that per year in order to afford to put away some of your income in savings. The median household income in the U.S. is $78,538, which puts living in some parts of Connecticut within reach for many, even though it’s not considered one of the most affordable states. (In the U.S. News & World Report ranking of cost of living, Connecticut comes in at 40.)

What Major City Has the Lowest Cost of Living in Connecticut?

While the state of Connecticut as a whole has a slightly higher cost of living than the national average, some communities are more affordable to live in than others.

Hartford, in particular, has an average cost of living just 1.4% higher than the national average, making it the most affordable of Connecitcut’s major cities. Stamford’s cost of living, by way of contrast, is about 27.3% higher than the national average.

Helpful Resources for Future Connecticut Residents

(Last Updated – September 2,2025)

Located in the West South Central region of the United States, Arkansas is notable for its hospitality, diverse economy, and natural beauty, which includes much of the scenic Ozark Mountains. You can spend your free time in the Natural State fishing, biking, and hiking in the great outdoors, or enjoy shopping, dining, and visiting with friends in communities that are famous for their small-town charm.

Arkansas is also one of the most affordable places to live in the U.S., especially when it comes to housing. Read on to learn more about the cost of living in Arkansas, and see if this state might be a good fit for you.

What’s the Average Cost of Living in Arkansas?

Average Cost of Living in Arkansas: $44,254 per year

If you’re looking for a state with an affordable cost of living, Arkansas is definitely worth checking out. It ranks tenth in the U.S. for affordability, according to data from the Missouri Economic Research and Information Center (MERIC). That’s close in cost to neighboring states Oklahoma (first), Missouri (fourth), Mississippi (second), and Tennessee (ninth); but a little less expensive than nearby Louisiana (17th) and Texas (15th).

What is the cost of living in Arkansas in dollars? The average annual cost of living in Arkansas is $44,254, according to data from the Bureau of Economic Analysis. Based on that figure, the average monthly cost of living in Arkansas would be about $3,688. (Your costs will differ, of course, depending on the size of your family and other factors. Singles typically spend significantly more per capita than married couples do on categories like food and housing, for example, and less on health care.)

Here’s how that breaks down into major cost categories.

Housing Costs in Arkansas

Average Housing Costs in Arkansas: $763 to $1,297 per month

You can expect housing to be one of your biggest costs no matter where you live, but according to MERIC data, housing costs in Arkansas are well below the national average. That’s good news whether you’re buying your first home or your forever home.

Arkansas has close to 1.4 million housing units, according to census data. Zillow listed the typical Arkansas home value at about $219,391 in August 2025, compared with a U.S. average of $368,581. The average monthly mortgage cost in Arkansas is $1,916.29.

Below is a breakdown of what monthly housing prices can look like in Arkansas if you’re renting, per the latest census data.

•  Median studio rent: $763

•  Median one-bedroom rent: $754

•  Median two-bedroom rent: $897

•  Median three-bedroom rent: $1,131

•  Median four-bedroom rent: $1,371

•  Median five-bedroom (or more) rent: $1,109

•  Median gross rent: $933

Arkansas home prices can vary significantly depending on where you are in the state. Here are typical home prices in 10 major Arkansas cities, according to Zillow, in August 2025.

Utility Costs in Arkansas

Average Utility Costs in Arkansas: $332 per month

Once you’ve got your housing costs covered, there are still the utility bills to consider. Costs vary based on location, family size, and time of year, but here’s a look at what you can expect to spend monthly on average in Arkansas.

Food & Beverage

Average Food & Beverage Costs in Arkansas: $299 per person, per month

Another ongoing expense is buying groceries. Along with your personal food choices and family size, where you live can also affect how much you’ll spend on food.

The Bureau of Economic Analysis estimates that the average Arkansan’s nonrestaurant food cost is $3,590 annually, or about $299 per month. That means a family of four can expect to spend about $1,200 on groceries each month.

The Council for Community and Economic Research, which tracks the food costs in major American cities, ranked these Arkansas cities from lowest to highest for their 2024 grocery costs, using a scale on which 100 is the national average.

Transportation

Average Transportation Cost in Arkansas: $10,505 to $19,548 per year

Transportation costs can be a budget-buster, depending on the current price of gas, commute times in your area, and public transportation options.

Although public transit is available in different regions of Arkansas, most people still drive to and from work. The good news for those commuters is that the state is rated 13th in the nation for its commuting time by U.S. News and World Report’s current “Best States” rankings.

Family size, including the number of working adults in the home, also can be a factor in how much your transportation costs will be. This breakdown from MIT’s Living Wage Calculator can give you a general idea of what to expect when it comes to costs.

Health Care in Arkansas

Average Health Care Costs in Arkansas: $8,098 per person, per year

Your health needs, as well as your insurance coverage, will help determine how much you end up paying for care each year for yourself and your family. But according to the Bureau of Economic Analysis Personal Consumption Expenditures by State report, the annual cost of health care per Arkansan is $8,098. As a monthly expense, that works out to about $674.

Child Care

Average Child Care Costs in Arkansas: $733 to $1,149 or more per child, per month

Having kids generally makes a major impact on your budget, and child care is often one of the biggest monthly expenses families have to manage. As you might expect, prices tend to be higher in larger cities, like Little Rock, Fort Smith, and Fayetteville, than in Arkansas’ mid-sized and rural communities. The price you pay for care will also depend how old your child is and whether or not you choose home-based family care.

Here are the average child care costs in Arkansas, per the most recent data from CostofChildCare.Org.

Taxes

Highest Marginal Tax Rate in Arkansas: 3.9%

Residents of Arkansas get a bit of a break when it comes to state income taxes. At 3.9%, Arkansas’ highest marginal state income tax rate is lower than that in most of its neighboring states.

The state sales tax rate in Arkansas is 6.5%, which is among the highest in the U.S. However, Arkansas doesn’t have a state inheritance or estate tax.

Arkansas counties collect an average of 0.52% of a property’s assessed fair market value as property tax per year.

Miscellaneous Costs

Now that we’ve covered the essentials (food, housing, utilities, etc.), we can turn our focus to the fun stuff. Here’s a look at how you might spend your days (and some of your discretionary funds) as a resident of Arkansas:

•   Soak up the beauty of Hot Springs National Park. There’s no cost to enter the park, and you can park in some areas downtown for free. If you have enough energy left after tackling the park’s hiking trails, be sure to check out the nearby shops, restaurants, and attractions.

•   Shop, dine, or just stroll in downtown Little Rock’s River Market District. You can buy fresh veggies at the Saturday farmers market, enjoy live music, take a fare-free streetcar ride, or visit the local art galleries.

•   Cheer on the Razorbacks. Single-game tickets for University of Arkansas football games, played in Razorback Stadium in Fayetteville, typically go on sale in July, and seats can range from about $35 to more than $1,000 each, depending on where they’re located.

•   Take a walk through Walmart history. Find out how the Walmart retail chain got its start in Arkansas—and how it grew—at the Walmart Museum in Bentonville. Admission is free.

•   Go on a wine country tour. The Arkansas River Valley remains the hub for wineries, but you can find wineries and vineyards across the state. You can time your visit to coincide with one of the state’s annual wine festivals or visit any time. A bottle of cabernet sauvignon can cost about $20, and many venues offer live entertainment on the weekends.

•   Tour the trails near Bentonville on a mountain bike. A half-day tour that includes a professional guide, bike, helmet, water, and transportation to and from Bentonville costs about $100 per person

Recommended: What Are the Average Monthly Expenses for One Person?

How Much Money Do You Need to Live Comfortably in Arkansas?

We all have different wants and needs, so it’s hard to say exactly how much money you might require to maintain a lifestyle that’s comfortable for you in Arkansas. But in Arkansas, the odds are in your favor. The state shines when you compare its affordability to the cost of living in other states. Per MIT’s Living Wage Calculator, a single childless adult would need to make $40,540 a year before taxes to cover expenses in Arkansas. U.S. News & World Report’s Best States ranking named Arkansas as the most affordable state in 2025. And MERIC’s cost of living data also ranked Arkansas as one of the top affordable states, at #10.

Explore the best affordable places in every state.

What City Has the Lowest Cost of Living in Arkansas?

These three cities in Arkansas all have a low cost of living, according to the Council for Community and Economic Research Cost of Living Index for 2024:

Jonesboro

Jonesboro is probably best known as the home of Arkansas State University (go Red Wolves!), and it has a lively college-town appeal. But it’s also family-friendly, and academic excellence is a priority from grade school on up. It’s a growing city with diverse employment opportunities. And there’s plenty to do, from events in the popular downtown area to relaxing in one of the city’s many parks. Jonesboro’s cost-of-living index (83.3) makes it one of the most cost-effective places to live in the U.S.

Conway

Conway — home to University of Central Arkansas, Hendrix College, and Central Baptist College — is another popular college town in Arkansas. It’s also home to several large employers, including American Transportation, Acxiom, Frigidaire, Virco Manufacturing, and Kimberly Clark. If you’re looking for cultural activities, Conway is also known for its focus on the arts: The city has its own symphony orchestra. And outdoor enthusiasts can go fishing and boating on Lake Conway and Beaverfork Lake, or explore the city’s many parks and trails. With its low cost-of-living index (83.9), Conway can be an affordable place to settle down, whether you’re just starting out or ready to retire.

Little Rock/North Little Rock

Little Rock is the capital of Arkansas, and it’s also the state’s largest city. But both Little Rock and North Little Rock are known for their vibrant arts and cultural scenes, and for their important role in American history. The Arkansas River Trail, a 15.6-mile loop that connects the two cities, offers a view of the river and city skyline for both cyclists and pedestrians. The cost of living index (93.4) is a bit higher in this area, but it’s still comfortably below the national average.

Helpful Resources for Future Arkansas Residents