Home Affordability Calculator in Arkansas

In Arkansas, the median home costs $253K and the median household income is $62K/year. Find out how much house you can afford based on your income, debts, and down payment. Formula shown, sources cited — no account required.

With a median home price of $253,000 and a median household income of $62,106, Arkansas's price-to-income ratio is approximately 4.1 — tight but manageable compared to most of the country. A 10% down payment requires $25,300 in cash, plus closing costs of roughly $3,795. The market outside Little Rock and Fayetteville tends to be balanced or buyer-friendly, with more negotiating room and fewer bidding wars than in competitive metro markets. The ADFA Move-Up Loan and the DPA Program both help first-time buyers reduce the upfront cash requirement, making ownership accessible at income levels that would struggle in higher-cost states. Buyers should still build an emergency reserve on top of the down payment, since Arkansas homes — particularly older stock — can carry deferred maintenance costs. Use the home affordability calculator with your income and current debt payments to find the price range where monthly costs stay sustainable.

$253K

Median Home Price

$62K/yr

Median Income

10%

Avg Down Payment

90.1 / 100

Cost of Living

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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 $62,106/year ($5,176/month), that means a maximum housing payment of roughly $1,449/month.

At 6.65% over 30 years with a 10% down payment ($25,300), that monthly budget supports a purchase price of approximately $240,350–$253,000. The median home price in Arkansas is $253,000, which means housing is more affordable than the national average.

Questions You Might Ask — Home Affordability in Arkansas

How much house can I afford in Arkansas?

With the median household income of $62,106 in Arkansas, the 28% housing rule allows a maximum monthly payment of $1,449. At 6.65% over 30 years with 10% down, that supports a purchase price of roughly $251K. The median home in Arkansas is $253K.

What is the median home price in Arkansas?

The median home price in Arkansas is $253,000 (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 90.1 (100 = national average).

What income do I need to afford the median home in Arkansas?

To afford the $253K median home in Arkansas with a 10% down payment ($25,300) and 6.65% rate (30 years), you need a gross annual income of at least $72,106 — following the 28% rule. The state median household income is $62,106.

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 ($2,226 on the Arkansas median income).

How does Arkansas's cost of living affect home affordability?

Arkansas has a cost of living index of 90.1 (100 = national average). Arkansas's cost of living is near the national average, so total housing affordability is similar to most other states.

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.