How Much House Can I Afford in Arkansas?
Median Home Price
$220,000
Median Household Income
$56,000
Avg Property Tax Rate
0.60%
Avg Insurance/mo
$200
Arkansas is one of the most affordable states for homeownership in the country, with a median home price of approximately $220,000 and a property tax rate of just 0.60%. For buyers with modest incomes, this combination of low prices and low taxes creates genuine homebuying opportunities that are rare elsewhere.
The state has two distinct housing markets. Little Rock and its suburbs offer the broadest selection of homes at $180,000–$320,000. Northwest Arkansas — anchored by Bentonville, Rogers, Fayetteville, and Springdale — has become a tech and corporate hub, driving home prices to $280,000–$400,000 in desirable areas.
Homeowners insurance in Arkansas runs higher than you might expect given its low home prices, averaging around $2,400/year ($200/month). Tornado risk throughout the state is the primary driver. Buyers should shop multiple carriers and consider the age and construction type of the home.
Arkansas offers down payment assistance through the Arkansas Development Finance Authority (ADFA). The Move-Up program and associated down payment assistance programs can help income-eligible first-time buyers reduce upfront costs.
Arkansas has a low median home price ($220,000) and a low property tax rate (0.60%).
Tornado risk drives homeowners insurance above the national average.
NW Arkansas (Bentonville, Fayetteville) is a fast-growing corporate hub with higher prices.
ADFA offers down payment assistance for income-eligible first-time buyers.
Income
Monthly Debts
Down Payment
warningPMI applies — put 20% down to eliminate it
DTI Guideline
Front 30% / Back 40%
You can afford up to
—
$2,500/month total payment
Constrained by front-end DTI
Budget Range
Conservative → AggressiveDebt-to-Income Ratios
Front-end DTI (housing)
Back-end DTI (all debts)
Monthly Payment Breakdown
Scenario Comparison
Ways to Increase Your Budget
Adding $10K to your down payment could increase your budget by $9K.
+$9KA 0.5% lower rate could expand your budget by $13K.
+$13KYou're paying $196/mo in PMI. Reaching 20% down eliminates this cost.
Know your target home price?
arrow_forwardSee full amortization scheduleDisclaimer: These estimates are for educational purposes only. Actual loan qualification depends on your credit score, lender guidelines, and local market conditions. Consult a licensed mortgage professional before making any financial decisions.