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Arkansas offers a low cost of living, making it attractive to families, retirees, and young workers. Whether you prefer busy Little Rock or quaint Fayetteville, affordable options abound. But what is the cost of living in Arkansas? Let’s find out.
Arkansas’s living costs typically include housing, groceries, and healthcare, varying with region, lifestyle, and needs. This blog will outline living expenses in Arkansas, compare them to other states, and explain what affects them. Whether you’re moving or just exploring, this guide offers helpful insights.
What is the Cost of Living in Arkansas?
Arkansas’s cost of living is about 14% lower than the U.S. average, making it one of the cheapest states. Individuals spend about $1,787 monthly on housing, utilities, and transportation, highlighting the state’s affordability.
Typical living expenses are rent, groceries, utilities, health care, and travel. However, the cost will depend upon the region, living standard, etc. This allows for more financial freedom.
Read Related Article: What is the Cost of Living in Arizona?
What Are Housing Costs in Arkansas?
Housing costs in Arkansas are cheaper. This makes the state appealing to those seeking affordable living. However, prices vary by location. Here are average home values in some Arkansas cities:
- Little Rock: $190,544.
- Fayetteville: $327,536.
- Fort Smith: $159,371.
- Jonesboro: $206,627.
- Springdale: $282,850.
How Much Taxes do I Pay in Arkansas?
Taxes significantly affect Arkansas’s cost of living. The state has a progressive income tax, ranging from 2% to 5.9% based on income. Its sales tax is 6.5%, slightly above average. However, local taxes can push this over 9%.
Here’s a comparison of income tax rates in nearby states:
- Arkansas: 2% – 5.9%.
- Mississippi: 5%.
- Texas: No state income tax.
- Oklahoma: 0.5% – 5.25%.
- Tennessee: No state income tax.
Knowing these tax rates helps maximize your financial potential.
How to Manage the Cost of Living in Arkansas?
Planning is key to succeeding financially in Arkansas. Here are tips to cut costs:
- Consider Cheaper Areas: You can save on housing in smaller cities like Fort Smith or Jonesboro compared to Fayetteville or Little Rock. Research different areas for the best savings.
- Use Tax Benefits: Seek deductions and credits, like property tax relief. Smart tax planning reduces costs.
- Plan Transportation Costs: Reduce travel expenses by living closer to work or using public transport. Carpooling and having a fuel-efficient car also help. In rural areas, minimizing long drives saves money.
- Utilize Public Education: Public schools and community colleges offer quality education at low costs. This eases the financial burden on families.
- Plan for Emergencies: Save for unexpected costs like medical bills or job loss. Aim for three to six months’ worth of expenses. An emergency fund reduces stress and prevents debt.
Read Related Article: What is the Cost of Living in Alaska?
Utility Expenses in Arkansas: What to Expect
Residents enjoy low gas and water bills, boosting affordability. The monthly utility bill in Arkansas averages around $404, which is relatively low.
Here’s the breakdown of cost:
- Energy: $123.69.
- Water: $26.
- Gas: $65.
- Internet: $30 – $65.30.
- Phone: $114.
The state’s mild spring and fall reduce heating and cooling needs. However, summer can spike electricity costs due to air conditioning, especially in the south.
Grocery and Food Costs in Arkansas
Arkansas has cheap groceries and local produce. The average monthly grocery bill is $543.
Here are some prices:
- Milk (1L): $0.99.
- Bread (500g): $2.98.
- Eggs (12): $3.17.
- Chicken Breast (1kg): $9.86.
- Potatoes (1kg): $2.52.
- Apples (1kg): $4.69.
There are numerous farmers’ markets in Arkansas that sell reasonable seasonal produce. Other cheaper stores and buying in bulk are also widely available, which can help families.
Transportation Costs in Arkansas
Arkansas transport is also cheap compared to the national average. This makes fuel costs manageable for most. Here are some typical transportation costs:
- Local Transport Ticket: $1.39.
- Monthly Pass: $38.
- Taxi Ride (8 km): $15.10.
- Gas prices: $0.79 per gallon.
Public transport is available in Little Rock and Fayetteville. However, most residents rely on personal vehicles. Car ownership is the norm. Car owners should also budget for maintenance, insurance, and fuel. Despite Arkansas’s low transportation costs, these are vital for decreasing expenses.
How Much Does Healthcare Cost in Arkansas?
Healthcare in Arkansas is at least 11% cheaper than the national cost. This makes it appealing for those worried about costs. Here are some typical expenses:
- Doctor’s Visit: $139.
- Cold Medicine (1 Week): $15.
- Health Insurance Premiums: Varies by provider and plan.
Arkansas provides Medicaid for low-income residents, reducing costs for those eligible. Although premiums differ, residents usually pay less than in many other states.
Read Related Article: What is the Cost of Living in Hawaii?
What are Education and Childcare Costs in Arkansas?
Education and childcare costs are affordable in Arkansas. Childcare costs, like daycare and preschool, are below the national average. For example:
- Daycare/Preschool: $1,059 per month.
- International Primary School: $19,905 per year.
Arkansas offers low-cost early childhood education options, cheaper than those in many states. Public schools are also affordable, reducing overall costs. Arkansas boasts institutions like the University of Arkansas for higher education.
Entertainment and Leisure Expenses in Arkansas
Arkansas is affordable, especially for outdoor lovers. It’s ideal for those seeking a luxurious life. Here are some costs:
- Gym Membership: $46.50 per month
- Dining Out (for 2): $56.70
- Cinema Ticket: $12.90
Take advantage of free or cheap attractions like state parks and community events to save on entertainment. Arkansas offers affordable museums, galleries, and historic sites. So, entertainment costs are low. This allows residents to enjoy activities without overspending.
How much does it cost to Live in Arkansas?
The cost of living in Arkansas is much lower than that of the whole country. The average monthly expenses for a single individual are $1,787, while for a family of four, it’s about $4,417. This cost covers housing, utilities, groceries, transportation, and healthcare.
Expenses vary by location, lifestyle, and family size. Arkansas’s natural beauty and outdoor activities boost its appeal. Friendly communities make it attractive, especially for families.
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Conclusion
Arkansas has low housing costs and cheap utilities. Its overall affordability appeals to those wanting to stretch their budgets. Planning can help you make informed decisions.
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FAQs for What is the Cost of Living in Arkansas
What is the Average Cost of Living in Arkansas?
In Arkansas, a single person spends about $1,787 monthly on housing, utilities, food, transport, and healthcare. However, the cost will depend upon the region, living standard, etc.
How do Housing Costs in Arkansas Compare to the National Average?
Arkansas’s average home price is much lower than expected. The figure for average home values is approximately $436,800. Rent prices for a one-bedroom flat range between $800 and $1020. These relatively low amounts make Arkansas wonderful for applicants on a lower budget or families looking to spend less.
Are Utilities Expensive in Arkansas?
Arkansas utilities are affordable, averaging around $404 a month. This includes electricity ($123.69), water ($26), natural gas ($65), internet ($30–$65.30), and phone service ($114). Summer cooling costs may rise, but total costs remain near or below the national average.
What are the Transportation Options and Costs in Arkansas?
Most people in Arkansas rely on cars due to limited public transit. Some public options in cities such as Little Rock and Fayetteville include buses and taxis. A bus fare is about $1.39 for single rides, while a bus pass can cost $38. A liter of gasoline retails for about $0.79; therefore, owning a car makes regaining money on the car easy for most.
How Much Should I Budget for Groceries in Arkansas?
A single person’s monthly grocery bill is expected to be about $543. For a family of four, it’s about $1,444. There may be slight differences in the prices across cities. Milk, eggs, and bread, which cost about $0.99/L, $3.17/dozen, and $2.98, respectively, are reasonably priced. With proper planning and decorum, these expenses can be reduced.
