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Cost of Living Comparison for Fayetteville, AR
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Fayetteville's cost of living index is 88 — 12% cheaper than the national average. This factors in housing, groceries, utilities, transportation, and healthcare. Use this calculator to see how your purchasing power would change if you moved to another city.
✓ Calculator below is pre-filled with Fayetteville local data
Data as of · Sources: Zillow, Census ACS, Tax Foundation, Freddie Mac
Arkansas Financial Snapshot (2026) — Cost of Living Comparison
Cost-of-living index and median income anchor the budget math for the cost of living comparison in Arkansas.
How the Cost of Living Comparison Math Works Under Arkansas Law
Your cost of living comparison in Arkansas is driven by the BEA Regional Price Parity (RPP) — a purchasing-power index where US = 100. The all-items RPP tells you how far a dollar goes statewide vs the national average; housing-only RPP isolates the rent/mortgage side, which is the single biggest budget line for most households[1].
When the all-items RPP is above 100, the same expense basket costs more to maintain in Arkansas. The 50/30/20 rule (needs/wants/savings) bends toward needs in high-RPP states and toward savings in low-RPP states.
Calc-specific note: COL index normalises everything to US = 100. Housing RPP + all-items RPP are the two dimensions that move together.
Worked example — Arkansas
Arkansas's BEA all-items RPP measures how far a dollar goes vs US = 100. $100 of mainstream-basket spending in Arkansas costs $(RPP) in the US average. Housing RPP is usually the biggest swing component — run the housing tile separately when comparing metros.
Local context: Fayetteville, AR
Housing economics in Fayetteville, AR. The median home value runs 2.3% above the U.S. baseline for Fayetteville, AR is $366,288 per Zillow's home-value index. Median rent runs $1,606 a month per Zillow ZORI, cheaper than the national $1,850 baseline. Effective property tax sits at 0.60% of assessed value, below the 0.99% national average tracked by the Tax Foundation.
Income and tax climate. Arkansas's top marginal state income tax bracket lands at 4.90% — compared to the volume-weighted national average around 4-5%. BEA's Regional Price Parity scores Fayetteville, AR at 88.0 (national = 100), meaning a dollar in Fayetteville, AR buys 114¢ — more goods and services than the same dollar nationally.
Local context as of 2026-04-19.
Fayetteville versus the U.S. baseline
| Metric | Fayetteville, AR | U.S. baseline | Difference |
|---|---|---|---|
| Median home value[zillow] | $366,288 | $358,000 | 2.3% |
| Median monthly rent[zillow] | $1,606 | $1,850 | -13.2% |
| Property tax (effective)[tax-foundation] | 0.60% | 0.99% | -39.4% |
| State top marginal income tax[tax-foundation] | 4.90% | ~4.08% (volume-weighted) | 0.8 pp |
| State cost-of-living index[bea-rpp] | 88.0 | 100.0 | -12.0 pts |
How to use the Cost of Living Comparison
Walk through using the Cost of Living Comparison with Fayetteville, AR-specific defaults pre-loaded from primary sources.
- Enter your Fayetteville numbersFill in the cost of living comparison inputs. Defaults reflect Fayetteville, AR 2026: median home $366,288, median rent $1,606/mo, 0.60% effective property tax.
- Apply the local 2026 inputsThe median home value in Fayetteville is $366,288 (Zillow ZHVI), with median monthly rent running $1,606/mo.
- Compare against Fayetteville contextMonthly PITI on the $366,288 median home in Fayetteville is ~$2,402/mo — vs a $1,606/mo median rent.
How Arkansas Compares to Neighboring States
| State | Median home | Top inc tax | Prop tax rate | RPP (US=100) |
|---|---|---|---|---|
| Arkansas (this page) | $198,000 | 3.90% | 0.64% | 86.8 |
| Louisiana equivalent | $215,000 | 3.00% | 0.55% | 88.7 |
| Mississippi | $182,000 | 4.40% | 0.79% | 86.8 |
| Missouri equivalent | $245,000 | 4.70% | 0.97% | 91.1 |
| check Tennessee | $325,000 | None | 0.71% | 92.1 |
Sources: Zillow ZHVI[1], state Departments of Revenue / Tax Foundation[2], Tax Foundation property taxes[3], BEA Regional Price Parities[4].
What Changes Your Result in Arkansas
- Arkansas cost-of-living drag:Line-item costs in Arkansas deviate from the US mean by whatever the BEA all-items RPP deviates from 100. Weight your budget toward the state average rather than the national average.
Related Calculations for Arkansas
- Arkansas rent affordability numbers for 2026 — rent is the biggest COL line.
How Fayetteville Compares to the National Average
Understanding how Fayetteville stacks up helps you calibrate your financial planning.
| Metric | Fayetteville, AR | US Average | Difference |
|---|---|---|---|
| Median Home Price | $366,288 | $420,800 | -13.0% |
| Median Monthly Rent | $1,606 | $1,713 | -6.2% |
| Median Household Income | $77,979 | $74,580 | +4.6% |
| Property Tax Rate | 0.60% | 1.10% | -45.5% |
| Cost of Living Index | 88 | 100 | -12.0% |
Sources: U.S. Census Bureau, BLS, Zillow, NAR (2024–2025). Green = favorable for residents; red = less favorable.
Fayetteville Financial Snapshot
- Population (Metro)
- 570,000
- Unemployment
- 2.8%
- Avg Commute
- 20 min
- Median Age
- 30.2
- Price-to-Rent Ratio
- 19.0x
- Annual Property Tax
- $2,198
More Financial Calculators for Fayetteville, AR
Cost of Living Comparison in Other Arkansas Cities
Frequently Asked Questions — Fayetteville
- Can median-income households afford the median home in Fayetteville?
- With a ~$2,402 monthly PITI and $77,979 median income, housing would consume ~37.0% of gross annual income. Qualifying under the 28% DTI rule requires ~$102,943 in annual income. Educational reference only.
- Is it better to rent or buy in Fayetteville?
- Fayetteville's price-to-rent ratio (19.0x) is roughly neutral — in the 15-20x range the decision depends on time horizon and wealth goals.
- What is the annual property tax bill on the median home in Fayetteville?
- Approximately $2,198/yr at the 0.60% effective rate on the $366,288 median home. The national average effective rate is 1.07%.
- What share of median income goes to rent in Fayetteville?
- The $1,606/mo median rent represents 24.7% of the $77,979 median household income. The recommended housing cost threshold is 30%; Fayetteville falls within that guideline. Educational reference only.
- How much does commuting cost in Fayetteville?
- Average commute time in Fayetteville is 20 minutes per ACS. Estimated annual commute cost runs about $3,484. Educational reference only.
- How does the cost of living in Fayetteville compare to the national average?
- Fayetteville's BEA RPP index is 88, 12% below the national baseline of 100. For a household earning the national median income of $77,540, this translates to ~$9,305/yr in purchasing power difference. Educational reference only.
- What is the median home price in Fayetteville, AR?
- The median home price in Fayetteville is $366,288 as of 2025–2026.
- What is the average rent in Fayetteville?
- The median monthly rent in Fayetteville, AR is $1,606.
- Does the cost of living comparison replace professional advice?
- No. This calculator gives educational estimates using public Fayetteville data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for decisions with material consequences.
Arkansas State Context
Arkansas Real Estate Tips
Arkansas has the 5th-lowest median home price in the nation at $275,000 — ideal for first-time buyers building equity quickly.
The Arkansas Development Finance Authority (ADFA) offers down payment assistance of up to $15,000 for qualifying buyers.
Property taxes at 0.62% are well below the national average, keeping annual housing costs low.
Arkansas is a non-judicial foreclosure state — lenders can foreclose without going to court, so stay current on payments.
Arkansas Homebuyer Programs
- ✓ADFA Down Payment Assistance (DPA) — up to $15,000 as a second mortgage at 0% interest, forgivable after 5 years.
- ✓ADFA Mortgage Credit Certificate — tax credit of up to 50% of mortgage interest paid annually.
- ✓USDA Rural Development Loans — most Arkansas counties qualify for 0% down payment financing.
Statewide Arkansas figures apply broadly across Fayetteville. County- and city-level variation can be significant — verify against local sources before closing a transaction. [3]
How we compute this — methodology
The Fayetteville page uses local median home price ($366,288), median rent ($1,606/mo), and property tax rate (0.60%) alongside the calculator's client-side formula. Calculations run in your browser — no inputs are sent to a server.
Known limits: ZIP-level variance within Fayetteville can be substantial — the figures shown are city-wide medians. For a precise property tax quote, consult your county assessor.
Sources
- Zillow Research — ZHVI (Zillow Home Value Index) + ZORI (Zillow Observed Rent Index), city-level. zillow.com/research/data. Retrieved 2026-04-19.
- U.S. Census Bureau — American Community Survey (ACS) 5-year estimates for median household income and population. census.gov/programs-surveys/acs.
- CalcFi state financial context — tips + first-time homebuyer programs compiled from each state's Housing Finance Authority (HFA) public pages. See
src/data/state-financial-context.ts. - Tax Foundation — state property tax effective rates and state/local sales tax rates. taxfoundation.org.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national mortgage rate averages used by mortgage-related calculators. freddiemac.com/pmms.
- Bureau of Economic Analysis — Regional Price Parities by State — www.bea.gov/data/prices-inflation/regional-price-parities-state-and-metro-area. Retrieved 2026-04-19.
- U.S. Energy Information Administration — residential electricity / natural gas / gasoline — www.eia.gov. Retrieved 2026-04-19.
- BLS Occupational Employment and Wage Statistics (OEWS) — state-level occupational wages — www.bls.gov/oes. Retrieved 2026-04-19.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national mortgage rates — www.freddiemac.com/pmms. Retrieved 2026-04-19.
- NAIC Dwelling Fire, Homeowners Owners, and Homeowners Tenants Insurance Report — content.naic.org/article/homeowners-insurance-report. Retrieved 2026-04-19.
- State Departments of Revenue — official bracket + deduction publications (one primary URL per state; linked in the brackets table below) — taxfoundation.org/data/all/state/state-income-tax-rates. Retrieved 2026-04-19.
- U.S. Department of Labor — State Minimum Wage Laws — www.dol.gov/agencies/whd/minimum-wage/state. Retrieved 2026-04-19.
- FRED (Federal Reserve Economic Data) — real median household income, unemployment, HPI, LFPR per state — fred.stlouisfed.org. Retrieved 2026-04-19.
Spot an error? Email [email protected] with the URL and the correct figure.
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