CALCMONEY // HOME AFFORDABILITY // AR
Find out how much home you can afford in Arkansas using local median home prices, current mortgage rates, and AR-specific property tax data.
Open Full Calculator$195,000
$1,215/mo
$195,194
$52,056/yr
| Median Home Price | $195,000 |
| Down Payment (20%) | $39,000 |
| Loan Amount | $156,000 |
| Monthly PI Payment | $1,033 |
| Monthly Property Tax | $101 |
| Monthly Insurance Est. | $81 |
| Total Monthly PITI | $1,215 |
| Required Gross Income (28% rule) | $52,056/yr |
| Max Affordable Price (28% rule) | $195,194 |
$6,825
$1,561/mo
Arkansas Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $195,000 | State median |
| Down Payment (20%) | $39,000 | Conventional |
| Monthly PITI (median home) | $1,215 | 6.95% rate |
| Required Income (28% rule) | $52,056 | Annual gross |
| Max Affordable Home | $195,194 | Based on median income |
| FHA Down Payment (3.5%) | $6,825 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Arkansas is $195,000, with a current 30-year fixed mortgage rate of 6.95%. A buyer putting 20% down on the median home would carry a loan of $156,000, resulting in a monthly principal and interest payment of $1,033. Once property taxes and insurance are added, total monthly housing costs reach $1,215.
Property taxes in Arkansas average 0.62%, well below the national average of 1.1%. On the median Arkansas home, property taxes add $101/month to total housing costs.
Arkansas levies a state income tax of 2%–4.7%, which affects take-home pay and therefore what you can realistically budget for housing. Mortgage interest may be deductible on both federal and Arkansas state returns — consult a tax professional for your situation.
Using the 28% rule, a household earning Arkansas's median income of $52,100/year can afford up to $1,216/month in total housing costs (principal, interest, taxes, and insurance). Based on Arkansas's current mortgage rate of 6.95% and property tax rate of 0.62%, that translates to a maximum affordable home price of approximately $195,194 with 20% down on a 30-year loan.
To comfortably afford the median Arkansas home priced at $195,000, you need an annual gross income of approximately $52,056. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,033, property taxes of $101, and insurance of $81) come to $1,215/month, which should not exceed 28% of your gross monthly income.
Arkansas's average property tax rate is 0.62%, which is well below the national average of 1.1%. On the median Arkansas home of $195,000, that means annual property taxes of $1,209, or $101/month. Because lenders include property taxes in your debt-to-income calculation, Arkansas's property taxes have a relatively modest impact on overall affordability.
The minimum down payment depends on your loan type. For an FHA loan, you can put down as little as 3.5% — on the median Arkansas home of $195,000, that is $6,825. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($39,000 on the median Arkansas home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Arkansas-specific minimum down payment requirements beyond federal guidelines.