Arkansas · Population 97,227 · Updated March 2026
How far your income goes in Fayetteville
State-level tax rates that affect your costs
Fayetteville is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 84 (where 100 equals the national median), Fayetteville residents can expect to pay median rent of $1,003/month while earning a median household income of $59,074/year.
The median home value in Fayetteville, AR is $322,500, with typical monthly owner costs around $1,121 including mortgage, insurance, and taxes. The median rent-to-income ratio of 20.4% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Arkansas has a moderate income tax rate of 4.4%. Combined with a 6.5% sales tax rate and 0.62% effective property tax rate, the overall tax environment is a factor in the total cost of living in Fayetteville.
Common questions about living costs in Fayetteville