FiscalCalc

Home Affordability Calculator in Arkansas

In Arkansas, the median home costs $195K and the median household income is $52K/year. Find out how much house you can afford based on your income, debts, and down payment.

$195K
Median Home Price
$52K/yr
Median Income
10%
Avg Down Payment
87 / 100
Cost of Living
$

Before taxes — use your total household income

$

Car loans, student loans, credit cards, etc. — not utilities

$
%

How Much House Can You Afford in Arkansas?

Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With Arkansas's median income of $52,000/year ($4,333/month), that means a maximum housing payment of roughly $1,213/month.

At 6.88% over 30 years with a 10% down payment ($19,500), that monthly budget supports a purchase price of approximately $185,250–$195,000. The median home price in Arkansas is $195,000, which means housing is more affordable than the national average.

Frequently Asked Questions — Home Affordability in Arkansas

How much house can I afford in Arkansas?+
With the median household income of $52,000 in Arkansas, the 28% housing rule allows a maximum monthly payment of $1,213. At 6.88% over 30 years with 10% down, that supports a purchase price of roughly $204K. The median home in Arkansas is $195K.
What is the median home price in Arkansas?+
The median home price in Arkansas is $195,000 (2026). Prices vary significantly by metro — urban areas typically run 20–50% above the state median, while rural areas may be well below. The cost of living index for Arkansas is 87 (100 = national average).
What income do I need to afford the median home in Arkansas?+
To afford the $195K median home in Arkansas with a 10% down payment ($19,500) and 6.88% rate (30 years), you need a gross annual income of at least $62,000 — following the 28% rule. The state median household income is $52,000.
What debt-to-income ratio do lenders require in Arkansas?+
Lenders in Arkansas (and nationwide) generally require a total DTI below 43% for conventional loans, with 36% preferred. FHA loans allow up to 50% DTI in some cases. This means your total monthly debt payments — mortgage, car loan, student loans, and credit cards — should not exceed 43% of your gross monthly income ($1,863 on the Arkansas median income).
How does Arkansas's cost of living affect home affordability?+
Arkansas has a cost of living index of 87 (100 = national average). Arkansas's below-average cost of living is a significant affordability advantage — lower everyday expenses mean more of your income can go toward housing.

Data Sources & Methodology

Median home prices from the National Association of Realtors (NAR). Median household income from U.S. Census Bureau ACS. Mortgage rates from Freddie Mac PMMS. Affordability calculations use the 28/36 DTI rule per Fannie Mae guidelines. Last updated 2026.

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Home Affordability by State

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