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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
For retirees on a fixed income, every percentage point matters. Our retiree-weighted model scored 1 cities in Arkansas and Little Rock (index 89, healthcare 91, state tax 3.9%) takes the top spot.
#1 Ranked: Little Rock — cost index 89, rent $1,171/mo, income $60,583
Retiree-weighted scoring: healthcare index 91, state tax 3.9%, cost index 89 — protecting fixed retirement income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
For retirees on a fixed income, every percentage point matters. Our retiree-weighted model scored 1 cities in Arkansas and Little Rock (index 89, healthcare 91, state tax 3.9%) takes the top spot.
The #1 spot goes to Little Rock, and the breakdown explains why. Renters here pay $1,171/month — saving renters $8,688 per year compared to the national average. Meanwhile, Housing is the standout at index 71, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 91. At a 23% rent-to-income ratio, there's genuine breathing room in the average household budget.
Retirement affordability is about protecting fixed income. Our model weights healthcare costs at 25 points (medical bills are the #1 financial risk in retirement), cost index at 25 points, and state tax burden at 15 points (taxes directly reduce pension and Social Security income). Little Rock leads with low healthcare costs, a 3.9% state tax rate, and a cost index of 89.
Now zoom in on the cost categories. Across Arkansas, the average cost of living index is 89 — 23 points below the national median. Known for one of the nation's most affordable states, the state offers 1 tracked cities with median rents averaging $1,171/month. That's $724 less than the national average of $1,895. That level of affordability is getting rarer every year.
Bottom line: Little Rock leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Little Rock | 89 | $1,171 | Details |
203,842 residents · Arkansas
Why Little Rock ranks #1: the numbers tell a clear story. At 89 on the cost index, residents save roughly 23% less than the typical American. Rent sits at $1,171/month while the median household pulls in $60,583/year. The Housing category is particularly strong at 71, though Healthcare (91) lags behind. Home prices average $214,773 — $252,597 below the national median.
Our persona scoring model weights cost of living, income, rent, healthcare costs, tax burden, and population size differently based on what matters most to retirees. Each factor contributes 10-25 points to a 0-100 composite score. Cities with the highest composite rank first. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Little Rock ranks #1 in Arkansas for this analysis with a cost index of 89 and median income of $60,583.
Little Rock scores highest for retirees due to its below-average cost of living, median rent of $1,171/mo, and competitive median income of $60,583.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Little Rock is $1,171/month as of 2026, based on Zillow's Observed Rent Index. This is $724 below the national median of $1,895/month.
The median home price in Little Rock is $214,773, which is 3.5× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Arkansas has a 3.9% state income tax rate. Combined state and local sales tax averages 9.47%, and the effective property tax rate is 0.57%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.