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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
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
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Little Rock | $1,171 | 35% | 68 | Details |
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).
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.
The #1 spot goes to Little Rock, and the breakdown explains why. That's more or less in line with the region. Renters here pay $1,171/month — saving renters $8,688 per year compared to the national average. Meanwhile, Housing is the standout at index 68, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 94. At a 23% rent-to-income ratio, there's genuine breathing room in the average household budget.
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.
203,842 residents · Arkansas
Little Rock earns its position at #1 through a combination that's hard to replicate. The 68 cost index sits 43 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 68, while Healthcare trails at 94.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Little Rock | 3.9% | 9.47% | 0.57% | $30,812 |
We model what a $40K salary looks like after taxes in each city: federal income tax (marginal brackets), FICA (7.65%), and state income tax. Then we compare take-home against local rent and costs to determine where the salary stretches furthest. 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.
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.