Income needed to buy a house in Arkansas
A median-priced home in Arkansas costs $215,600. With 20% down you'd need about $58,506 a year, within reach of the state's median household income of $62,106. Arkansas ranks #3 of 51 for the lowest income needed.
Income needed: $58,506 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $58,506 a year to buy a $215,600 home in Arkansas with $43,120 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,142 |
| Property tax | $93 |
| Homeowners insurance | $131 |
| Total | $1,365 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $10,780 | $1,665 | $71,338 |
| 10% | $21,560 | $1,589 | $68,088 |
| 20% | $43,120 | $1,365 | $58,506 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Arkansas: what's different
- Transfer tax
- 0.33%, split 50/50
- On the median home
- $710
- Homestead break
- $600 credit ($675 in 2027)
- First-time buyer help
- Arkansas Development Finance Authority
- Transfer and recording taxes. The real property transfer tax is $3.30 per $1,000 of the price (0.33%). Unless the contract says otherwise, the buyer and the seller each pay half. On the median Arkansas home ($215,600), that's about $710 in transfer tax.
- Property tax breaks for your home. Owner-occupants get a homestead credit of up to $600 on 2026 tax bills, and Act 174 of 2026 raises it to $675 starting with the 2026 assessment, billed in 2027. After a reappraisal, a homestead's assessed value can rise no more than 5% a year, and owners 65 and older or disabled can freeze it. Apply with the county assessor.
- First-time buyer help. The Arkansas Development Finance Authority offers the StartSmart First-Time Home Buyer Program through participating lenders (a mortgage about 1% below market rates for buyers who haven't owned their home in the past three years). Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Arkansas metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Little Rock, AR | $64,642 | $237,300 | $68,344 |
| Fayetteville, AR | $94,374 | $362,500 | $81,208 |
With 20% down, the median home takes about $64,642 a year in the Little Rock area and $94,374 in the Fayetteville area, compared with $58,506 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Arkansas less expensive than most states
- Home prices: the median value of $215,600 is 40% below the U.S. median of $360,600.
- Property tax: about 0.52% of value a year ($93 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,568 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $118 a month on this loan.
1 state needs at least 20% less income to buy its median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Arkansas?
About $58,506 a year for the median home of $215,600 with 20% down at 6.95%. With 10% down it's about $68,088.
What is the property tax rate in Arkansas?
The median Arkansas homeowner pays $1,113 a year, about 0.52% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Arkansas?
Median rent is $982 a month, while owning the median home costs about $1,365 a month with 20% down, before maintenance. Renting affordably takes about $39,280 a year under the 30% rule.