Arkansas cost of living
Can you afford to live in the Natural State?
+3 more
Relocating to Arkansas offers a fresh start — whether you’re drawn by job opportunities, family ties or a change of pace. Each move, however, comes with its own set of decisions, especially around day-to-day costs. Gaining a clear understanding of Arkansas’s cost of living will help you make informed choices and avoid surprises as you settle in.
To determine the cost of living in Arkansas, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Arkansas spend $44,254 each year on goods and services, on average.
Jump to insightThe median rent in Arkansas is $946, versus the national median rent of $1,639.
Jump to insightResidents in Arkansas spend $260.91 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.79 in Arkansas.
Jump to insightRecent data shows that employees in Arkansas pay $1,537 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Arkansas
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Arkansas was $44,254 in 2023. This total covers what Arkansans typically spend each year on essentials like housing, health care, groceries, energy and more.
Here’s a breakdown of the largest spending categories in Arkansas:
| Category | Annual per-capita cost in Arkansas |
|---|---|
| Housing and utilities | $6,796 |
| Health care | $8,098 |
| Food and beverages for off-premises consumption | $3,590 |
| Gasoline and other energy goods | $1,794 |
| All other personal consumption expenditures | $23,976 |
| Total cost | $44,254 |
Housing costs in Arkansas
Housing is typically the most significant part of a household budget. Recent data from Apartments.com shows the average rent in Arkansas is $946, which is noticeably lower than the national average of $1,639. Actual rent depends on property size and location. According to the U.S. Census Bureau’s 2023 American Community Survey, average monthly rents in Arkansas are:
- One-bedroom rent: $754
- Two-bedroom rent: $897
- Three-bedroom rent: $1,131
- Four-bedroom rent: $1,371
If you’re thinking about buying a home, Arkansas stands out for its relatively low prices. The median home price is $271,700, compared with the U.S. median of $446,638.
Property taxes are another consideration. Arkansas has an average effective rate of 0.53%.
» COMPARE: Best moving companies in Arkansas
Food costs in Arkansas
Grocery expenses in Arkansas are generally manageable, though how much you spend will vary by store and eating habits. The most recent U.S. Census data indicates the average weekly grocery bill in Arkansas is $260.91, while the U.S. average stands at $270.21.
Dining choices and shopping preferences play a big role in your total food costs. Cooking most meals at home can help your dollars go further. Prices for restaurant meals are often higher in cities like Little Rock or Fayetteville, while rural communities and smaller towns tend to offer lower-cost options for both groceries and dining out.
Transportation costs in Arkansas
Transportation costs can fluctuate, but as of August 2025, the average price for a gallon of regular gas in Arkansas is $2.79, compared with a national average of $3.13.
For vehicle owners, insurance is another routine expense. The average annual premium for full coverage in Arkansas is $1,132.59, while the national average is $1,258.
Health care costs in Arkansas
The typical Arkansas employee pays $1,537 each year toward employer-sponsored health insurance, with employers paying the remaining $5,825 of the $7,362 total premium.
By comparison, employees across the U.S. contribute an average of $1,640 toward a total premium of $8,182.
Utility costs in Arkansas
Electricity and natural gas bills are important for budgeting in Arkansas homes. The average monthly electric bill in Arkansas is $128.51, versus $136.84 nationally.
Natural gas prices in Arkansas are $15.25 per thousand cubic feet, while the national rate is $12.92.
FAQ
Does Arkansas have a high cost of living?
No, Arkansas doesn’t have a high cost of living compared with the national average. Most families find that housing and utility expenses are lower than what’s common in other states. Health care typically costs less as well.
Is Arkansas a good place to live?
Yes, Arkansas is a good place to live if you're looking for an affordable state that more and more people are choosing to call home. The lower overall expenses make it appealing to families and individuals alike, and its growing population suggests people are finding value in what Arkansas has to offer.
Is Arkansas good for renters?
Yes, Arkansas is good for renters. Rent is very affordable there, and it's relatively easy to find a place. Those looking for the lowest prices will appreciate Arkansas, though tenant protections aren’t as strong as in some other states.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
