Hot Springs, AR

Below Avg · 76

Arkansas · Population 16,509 · Updated March 2026

$1,167
Median Rent / Month
$69,953
Median Income
$262,000
Median Home Value
$813
Owner Costs / Month

Affordability

How far your income goes in Hot Springs

20.0%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Arkansas

State-level tax rates that affect your costs

4.4%
Income Tax (Top Rate)
6.5%
Sales Tax
0.62%
Property Tax Rate

Estimated Annual Costs

$14,004
Annual Rent
$3,078
State Income Tax
$1,624
Property Tax (est.)

Cost of Living Overview

Hot Springs is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 76 (where 100 equals the national median), Hot Springs residents can expect to pay median rent of $1,167/month while earning a median household income of $69,953/year.

The median home value in Hot Springs, AR is $262,000, with typical monthly owner costs around $813 including mortgage, insurance, and taxes. The median rent-to-income ratio of 20.0% 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 Hot Springs.

Frequently Asked Questions

Common questions about living costs in Hot Springs

What is the cost of living in Hot Springs, AR?
The cost of living index in Hot Springs, AR is 76 (US average = 100). Median monthly rent is $1,167, median household income is $69,953/year, and the median home value is $262,000.
Is Hot Springs, AR affordable?
Yes, Hot Springs is more affordable than the national average with a cost index of 76. The rent-to-income ratio is 20.0%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Hot Springs, AR?
The median gross rent in Hot Springs, AR is $1,167 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $14,004.
What is the median household income in Hot Springs?
The median household income in Hot Springs, AR is $69,953 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Arkansas?
Arkansas has a top income tax rate of 4.4%, a sales tax of 6.5%, and an effective property tax rate of 0.62%.