Arkansas Mortgage Calculator

Mortgage Calculator in Arkansas

The median home price in Arkansas is $180,000, which is 57% below the national average of $420,000. Arkansas's effective property tax rate of 0.61% is 0.49 percentage points lower than the national average of 1.1%.

Metric	Arkansas (AR)	National Avg	vs National Average
Median Home Price	$180,000	$420,000	-57%
Property Tax Rate	0.61%	1.1%	-0.49%
Home Insurance (Annual)	$2,400	$2,300	+4%
State Sales Tax	6.5%	5%	+1.5%
FHA Loan Limit	$472,030	$472,030	Standard
Conforming Loan Limit	$766,550	$766,550	Standard

Homeownership in Arkansas

Arkansas remains one of the most affordable housing markets in the country, with a median home price around $180,000 and property tax costs that are low in absolute terms despite the 0.61% effective rate. The state's economy is heavily tied to retail (Walmart is headquartered in Bentonville), agriculture, and a growing logistics and distribution sector. Northwest Arkansas around Bentonville and Fayetteville has seen significant price appreciation due to Walmart-connected migration.

Tips for Arkansas Homebuyers and Homeowners

• Arkansas assesses residential property at 20% of market value, so the 0.61% rate applies to just $36,000 on a $180,000 home -- your actual annual tax bill is very manageable.
• The state sales tax rate of 6.5% applies to most goods; combined with local rates, effective sales tax often hits 9-10% in cities, so budget for this in your overall cost-of-living assessment.
• Northwest Arkansas home prices have risen sharply -- Bentonville and Rogers now see median prices well above the state average, often $300,000-$400,000 for newer construction.
• Arkansas has no specific homestead exemption on the dollar amount, but residents over 65 or with disabilities qualify for a Property Tax Relief Credit of up to $375 annually.

Arkansas Programs and Assistance

• Arkansas Development Finance Authority (ADFA) Move-Up Program -- provides below-market first mortgage rates paired with down payment assistance for qualifying buyers.
• ADFA Down Payment Assistance (DPA) Program -- offers up to $15,000 in second mortgage assistance at 0% interest, forgivable after 10 years for eligible buyers.
• USDA Rural Development Guaranteed Loan Program -- covers much of the state's geography and offers 100% financing with no down payment for eligible rural and suburban areas.

Did you know? Bentonville, Arkansas -- home to Walmart's global headquarters -- saw home prices more than double between 2019 and 2024, driven by a wave of supplier relocations and Walmart's hiring expansion.