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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 68 — for better or worse — , healthcare 94, state tax 3.9%) takes the top spot (not adjusted for inflation, but still telling).
#1 Ranked: Little Rock — cost index 68, rent $1,171/mo, income $60,583
Retiree-weighted scoring: healthcare index 94, state tax 3.9%, cost index 68 — protecting fixed retirement income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Little Rock | 68 | $1,171 | Details |
For retirees on a fixed income, every percentage point matters. Our retiree-weighted model scored 1 cities in Arkansas and Little Rock (index 68 — for better or worse — , healthcare 94, state tax 3.9%) takes the top spot (not adjusted for inflation, but still telling).
Here's Little Rock by the numbers — and there's a lot to like (and a little to watch). Cost index: 68. Rent: $1,171/month. Income: $60,583/year. Home price: $214,773. Population: 203,842. The strongest category is Housing at 68; the most expensive is Healthcare at 94. Translate that rent to annual numbers, and residents are saving renters $8,688 per year vs. the national median. In the context of rising national rents, this stability is worth noting.
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 68.
And here's the trade-off: Across Arkansas, the average cost of living index is 68 — 43 points below the national median. And with some exceptions, known for one of the nation's most affordable states, the state offers 1 tracked cities with median rents averaging $1,171/month — this is the part where it gets real — . That's $724 less than the national average of $1,895. At this level, the city practically pays for your move.
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 (that's pre-tax, of course).
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 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.
Our persona scoring model weights cost, income, rent, healthcare, taxes, and city size based on what matters most to retirees. Each factor scores 10-25 points out of a 100-point composite. The guide ranks every tracked city in Arkansas by this personalized metric. 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.
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.