Cost of Living in Arkansas in 2025

Arkansas Cost of Living: Quick Takeaways

• Housing Costs: The average rent for a one-bedroom apartment in Arkansas has risen steadily, reaching about $950 in 2025.
• Transportation Expenses: Public transit fares are affordable with a one-way ride at $1.50, and fuel costs average $3.06 per gallon.
• Healthcare Costs: Monthly employer-sponsored health insurance premiums average around $150.
• Income Levels: Median household income has increased to approximately $55,000 in 2025.

Arkansas offers a relatively affordable cost of living compared to national averages, especially in housing and transportation.

This article provides a detailed breakdown of living expenses in Arkansas as of 2025, covering housing, utilities, healthcare, and more.

1. Housing Costs in Arkansas

Housing remains a major part of living expenses in Arkansas. Below is the historical average rent for a one-bedroom apartment:

• 2010: $600
• 2015: $700
• 2020: $800
• 2024: $900
• 2025: $950

This steady increase reflects growing demand and economic factors affecting the housing market.

For hospitality businesses, understanding local market trends is essential. Learn more about hospitality real estate market trends to make informed decisions.

2. Homeownership and Real Estate Trends in Arkansas

For prospective homeowners, the real estate market has experienced gradual appreciation:

• 2010: Median home price was approximately $120,000
• 2015: $150,000
• 2020: $180,000
• 2024: $219,240
• 2025: $219,240

This shows stable growth, making Arkansas an affordable option compared to national trends.

3. Transportation Expenses in Arkansas

Transportation options offer affordable choices in Arkansas:

• Public Transit One-Way Fare: $1.50
• Monthly Public Transit Pass: $50.00
• Fuel Cost per Gallon: $3.06
• Annual Vehicle Maintenance: $1,000

These expenses depend on individual travel habits but are generally lower than many states.

4. Utility Costs in Arkansas

Typical monthly utility costs for a standard apartment include:

• Electricity: $175.25
• Internet: $60.00
• Total Monthly Utilities: $235.25

Utility expenses vary based on usage and service providers but remain reasonably affordable.

5. Grocery and Food Expenses in Arkansas

Groceries cost around $300 per person monthly, with dining out options:

• Casual Meal: $12
• Mid-Range Restaurant Meal: $40

Food prices are slightly below national averages but can vary by location.

For restaurant owners aiming to optimize staff effectiveness during busy dining times, check out our guide to hiring reliable kitchen staff.

6. Healthcare Costs in Arkansas

Healthcare expenses include insurance premiums and out-of-pocket costs:

• Employer-Sponsored Insurance Monthly: $150
• Silver Plan Monthly Premium: $500

These costs may vary based on coverage and personal circumstances.

7. Educational Expenses in Arkansas

Education costs encompass various levels:

• Public Schools: Typically no direct tuition fees
• Private School Tuition (Average): $8,000 annually
• In-State University Tuition: $7,000 per year

These expenses depend on the chosen education path.

8. Entertainment and Leisure in Arkansas

Arkansas offers diverse leisure activities with associated costs:

• Movie Ticket: $10
• Gym Membership Monthly: $30
• Mid-Range Restaurant Meal: $40

Annual spending on entertainment averages around $2,000.

Explore how current restaurant consumer trends can influence leisure spending in hospitality settings.

9. Taxes and Miscellaneous Fees in Arkansas

Understanding taxes is crucial for residents:

• State Income Tax Rate: Ranges from 0.9% to 6.9%
• Sales Tax: 6.5%
• Property Tax Rate: Approximately 0.63%

These tax rates influence overall affordability and budgeting.

10. Childcare and Family Expenses in Arkansas

Families should consider childcare costs:

• Daycare Monthly: $800
• After-School Programs Monthly: $250
• Extracurricular Activities Monthly: $100

Childcare expenses can significantly impact family budgets.

11. Clothing and Personal Care Costs in Arkansas

Monthly expenditures for personal items include:

• Clothing: $100
• Personal Care Products and Services: $50

These costs vary with individual preferences and lifestyle.

12. Insurance Costs in Arkansas

Insurance expenses cover health, auto, and property protection:

• Health Insurance Monthly Premium: $500
• Auto Insurance Annual Premium: $1,200
• Homeowners Insurance Annual Premium: $1,000
• Renters Insurance Annual Premium: $200

These are necessary costs for financial security and compliance.

Hospitality employers should consider insurance options for restaurant owners to mitigate risks effectively.

13. Miscellaneous Expenses in Arkansas

Additional living costs include:

• Entertainment Annual Spending: $2,000
• Personal Care Services Annual: $600
• Miscellaneous Goods and Services Annual: $500

Such expenses vary depending on lifestyle and consumption habits.

14. Income and Salaries in Arkansas

Median household income has steadily grown:

• 2010: $40,000
• 2015: $45,000
• 2020: $50,000
• 2023: $55,000
• 2025: $55,000

This reflects economic improvements but may still lag behind some national figures.

For individuals interested in hospitality careers, discovering top-paying opportunities can be insightful. See more in our spotlight on top-paying restaurant jobs.

15. Comparison with National Averages

Arkansas’s cost of living comparison to U.S. averages reveals:

• Overall Cost of Living: Approximately 9% lower than national average
• Housing: 21% lower than national average
• Utilities: 8% below average
• Food: 4% less expensive
• Healthcare: About 1% higher
• Transportation: 6% lower
• Goods and Services: 13% higher

These statistics highlight affordability in key areas while pointing out where costs may be higher.

Restaurant owners facing staffing challenges may benefit from our guide on strategies to reduce restaurant employee turnover.

Our Methodology for Arkansas Cost of Living Figures

We compile data from reliable sources including government reports, surveys from Numbeo, BLS, Zillow, and other official publications. When exact data is missing, estimates are made cautiously to reflect realistic figures.

Arkansas Cost of Living: Conclusion

Arkansas offers a competitive cost of living with especially affordable housing and transportation costs in 2025.

While healthcare and goods and services costs may be slightly higher than national averages, overall expenses remain below average making it attractive for many residents.

Understanding these cost details aids in financial planning for those living in or considering a move to Arkansas.