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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. And more often than not, 1 out of 1 cities undercut the national cost index of 112. Leading the pack: Little Rock at index 89, where median rent of $1,171/month saves renters $8,688/year versus the national median.
203,842 residents · Arkansas
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.
#1 Ranked: Little Rock — cost index 89, rent $1,171/mo, income $60,583
1 of 1 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Cost Index | |
|---|---|---|---|---|
| 1 | Little Rock | $1,171 | 89 | Details |
Dollar for dollar, few states match Arkansas's value. And more often than not, 1 out of 1 cities undercut the national cost index of 112. Leading the pack: Little Rock at index 89, where median rent of $1,171/month saves renters $8,688/year versus the national median.
Here's Little Rock by the numbers — and there's a lot to like (and a little to watch). Cost index: 89. Rent: $1,171/month. Income: $60,583/year. Home price: $214,773. Population: 203,842. The strongest category is Housing at 71; the most expensive is Healthcare at 91. Translate that rent to annual numbers, and residents are saving renters $8,688 per year vs. the national median. That's a red flag worth investigating further.
Rent data is sourced from Zillow's Observed Rent Index (ZORI), which tracks the median rent across all active listings — not just new leases. This gives a more representative and stable signal than asking prices alone. Little Rock: $1,171/mo. The cheapest city here is $724 under the national median — that's $8,688/year in savings on rent alone.
And there's one more thing: Here's the state-level backdrop: Arkansas averages a 89 cost index, $1,171/mo rent, and $60,583 income across 1 cities. And depending on your situation, that's $724 less than the national rent average. One of the nation's most affordable states — and that context shapes every city in this ranking.
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 (that's pre-tax, of course).
Little Rock ranks #1 in Arkansas for this analysis with a cost index of 89 and 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.