A cozy brick house surrounded by a lush, well-maintained garden

Cost of living in Arkansas : Affordable state with low expenses and high quality of life

Arkansas offers an exceptionally affordable lifestyle with costs well below national averages. Key points include :

  • Housing costs are 46% lower than the national average
  • Utilities and healthcare expenses are significantly reduced
  • The living wage ranges from $15 to $19 per hour
  • No state income tax further enhances affordability
  • Average salaries comfortably exceed the estimated living wage

Arkansas stands out as one of the most affordable states in the United States, with a cost of living approximately 14% below the national average. Ranked as the 2nd or 3rd most affordable state, Arkansas boasts an overall cost of living index of 90.6, where 100 represents the national average. This affordability is primarily driven by lower housing costs, utility expenses, and healthcare prices, making it an attractive destination for those seeking a high quality of life without breaking the bank.

Housing costs: A major factor in Arkansas’s affordability

The housing market in Arkansas significantly contributes to its low cost of living. With a median home sale price ranging from $180,000 to $235,000, Arkansas offers homes at about 46% below the national average. The average rent for a 2-bedroom unit is $840 per month, a staggering 41% below the national average. Cities like Rogers, Russellville, Fort Smith, and Jonesboro are among the cheapest places to live in Arkansas, with average monthly costs under $1,500. As a skateboarding enthusiast, I’ve found these affordable housing options allow me to save money for my hobbies and travel aspirations.

City Average Monthly Cost
Rogers $1,450
Russellville $1,380
Fort Smith $1,420
Jonesboro $1,400

Essential expenses: Utilities, groceries, and healthcare

The cost of utilities in Arkansas is 8.7% below the national average, with an average monthly expense of $389.15. Grocery costs are also more affordable, with the average monthly expense per person at $282.46. Healthcare is another area where Arkansas shines, with costs more affordable compared to other states. The average health insurance cost for a 40-year-old is $456 per month, 18% below the national average. These lower costs for basic needs contribute significantly to the state’s overall affordability.

Expense Category Average Monthly Cost Compared to National Average
Utilities $389.15 8.7% below
Groceries (per person) $282.46 Below average
Health Insurance (40-year-old) $456 18% below

Income and living wage in Arkansas

The minimum wage in Arkansas is $11 per hour, while the estimated living wage for a single adult ranges from $15 to $19 per hour. To live comfortably in Arkansas, a single person needs an annual income between $34,920 and $40,000. The average annual salary in Arkansas is $52,150, which comfortably exceeds the living wage. Additionally, Arkansas has no state income tax, further increasing the affordability for residents. As a student majoring in Novel Media with a minor in Sociology, Evidence suggests that these income levels and low living costs allow me to pursue my education without excessive financial strain.

Income Category Amount
Minimum Wage (hourly) $11
Living Wage (hourly) $15-$19
Annual Income Needed (single person) $34,920-$40,000
Average Annual Salary $52,150
  • Arkansas ranked 41st in cost of living among US states
  • Monthly cost of living with rent: $1,780 for a single person, $4,266 for a family of four
  • Little Rock average monthly cost: $1,727
Lance Brownfield