Mountain Home, AR

Very Low · 56

Arkansas · Population 13,021 · Updated March 2026

$857
Median Rent / Month
$42,103
Median Income
$160,200
Median Home Value
$793
Owner Costs / Month

Affordability

How far your income goes in Mountain Home

24.4%
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

$10,284
Annual Rent
$1,853
State Income Tax
$993
Property Tax (est.)

Cost of Living Overview

Mountain Home is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 56 (where 100 equals the national median), Mountain Home residents can expect to pay median rent of $857/month while earning a median household income of $42,103/year.

The median home value in Mountain Home, AR is $160,200, with typical monthly owner costs around $793 including mortgage, insurance, and taxes. The median rent-to-income ratio of 24.4% 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 Mountain Home.

Frequently Asked Questions

Common questions about living costs in Mountain Home

What is the cost of living in Mountain Home, AR?
The cost of living index in Mountain Home, AR is 56 (US average = 100). Median monthly rent is $857, median household income is $42,103/year, and the median home value is $160,200.
Is Mountain Home, AR affordable?
Yes, Mountain Home is more affordable than the national average with a cost index of 56. The rent-to-income ratio is 24.4%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Mountain Home, AR?
The median gross rent in Mountain Home, AR is $857 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $10,284.
What is the median household income in Mountain Home?
The median household income in Mountain Home, AR is $42,103 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%.