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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match Arkansas's value. 1 out of 1 cities undercut the national cost index of 112 — we had to double-check this one — . Leading the pack: Little Rock at index 89, where median rent of $1,171/month saves renters $8,688/year versus the national median.
Dollar for dollar, few states match Arkansas's value. 1 out of 1 cities undercut the national cost index of 112 — we had to double-check this one — . Leading the pack: Little Rock at index 89, where median rent of $1,171/month saves renters $8,688/year versus the national median.
Little Rock earns its position at #1 through a combination that's hard to replicate. The 89 cost index sits 23 points below the national baseline, and the $60,583 median income means purchasing power here is amplified by the low cost base. Homes list at $214,773 — $252,597 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 71, while Healthcare trails at 91.
On a $40K salary, the key number is $1,000/month — that's 30% of gross, the standard affordability line. Little Rock ($1,171/mo, 35%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $30,812 to $30,812/year across these top picks.
It checks most boxes — but the healthcare costs are the asterisk. In Little Rock, the healthcare index sits at 91 — not a dealbreaker, but worth knowing about (and that gap widens if you factor in state taxes).
Flip the lens, and you get a different read: Arkansas — one of the nation's most affordable states. The 1 cities we track here average a cost index of 89 and median income of $60,583. It's a clear buyer's market compared to national norms. The typical rent runs $1,171/month, which is $724 less than the national median.
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.
#1 Ranked: Little Rock — cost index 89, rent $1,171/mo, income $60,583
0 of 1 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
203,842 residents · Arkansas
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.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Little Rock | $1,171 | 35% | 89 | Details |
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Little Rock | 3.9% | 9.47% | 0.57% | $30,812 |
Little Rock ranks #1 in Arkansas for this analysis with a cost index of 89 and median income of $60,583.
Yes. On a $40K salary in Little Rock, rent would consume about 35% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
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.
After federal taxes, FICA (7.65%), and 3.9% state income tax, estimated take-home on $40K in Little Rock is approximately $30,812/year ($2,568/month). After median rent of $1,171/month, you'd have roughly $16,760/year for all other expenses.
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.