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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 1 of 1 cities in Arkansas beat the national cost-of-living benchmark of 111. Little Rock stands out at 68 on the index, with rent of $1,171/month — which, honestly, is lower than you'd expect here — and household income of $60,583. Assembled from 2026 Census, Zillow, and BLS …
#1 Ranked: Little Rock — cost index 68, rent $1,171/mo, income $60,583
1 of 1 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Little Rock | 3.9% | 9.47% | 0.57% | $45,204 |
The numbers are clear: 1 of 1 cities in Arkansas beat the national cost-of-living benchmark of 111. Little Rock stands out at 68 on the index, with rent of $1,171/month — which, honestly, is lower than you'd expect here — and household income of $60,583. Assembled from 2026 Census, Zillow, and BLS data (not adjusted for inflation, but still telling). Quietly competitive.
What does daily life actually cost in Little Rock? Start with the 23% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Housing (index 68) is where the real savings show up, while Healthcare (index 94) is the line item most likely to surprise newcomers. Income at $60,583 and homes at $214,773 round out a profile that ranks #1 for clear reasons. If you've been scrolling through listings in high-cost metros and feeling defeated, look at these numbers again. Seriously. The difference between renting here and renting in a major coastal city could literally fund a retirement account. That's not hyperbole — run the math yourself. A thousand dollars a month saved, compounded over a decade, is a down payment on a house. In this city, that math actually works.
The 3.5× rule is a conservative benchmark: lenders often approve up to 4-5× income, but 3.5× keeps monthly payments safely under 28% of gross income at typical rates. On $60K, that means targeting homes under $210,000 — which, honestly, is lower than you'd expect here — . Little Rock offers a median home at $214,773 — a 3.6× ratio with room to spare (that's pre-tax, of course).
And there's one more thing: The 1 cities we track in Arkansas paint a clearly affordable picture. Average cost index: 68. Median rent: $1,171/month. Household income: $60,583. Arkansas is known for one of the nation's most affordable states — and the data backs that reputation convincingly.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Little Rock | 68 | $1,171 | Details |
203,842 residents · Arkansas
Why Little Rock ranks #1: the numbers tell a clear story. And as a general rule, at 68 on the cost index, residents save roughly 43% 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 68, though Healthcare (94) lags behind. Home prices average $214,773 — $252,597 below the national median.
We divide median home price by median household income for each city in Arkansas. A ratio of 3× means a home costs 3 years of gross income — generally considered affordable. Ratios above 5× signal a stretched market. 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 68 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.