Arkansas offers some of the lowest home prices in the nation, with a statewide median around $219,000 and a property tax rate of 0.62% — well below the national average. The state's housing market is a tale of two regions: the affordable, stable markets of Little Rock and the River Valley, and the rapidly appreciating Northwest Arkansas corridor anchored by Walmart's global headquarters in Bentonville, which has emerged as one of the fastest-growing metro areas in the country.
Calculate Your Monthly Payment
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Select a program to apply FHA/VA/USDA rules.
Funding fee is often financed into the loan.
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20.0% of home price
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Used to estimate potential Year‑2 escrow shock if taxes reset after purchase.
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Used for Conventional PMI estimates and FHA minimum down rules
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Extra payments reduce balance faster and can end PMI sooner.
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Principal & Interest • Tax • Insurance • PMI • HOA
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Note: This is an estimate. Tax timing, exemptions, and escrow rules vary by county and lender. Always verify with your county assessor and your lender’s escrow analysis.
Extra Payment Savings
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Disclaimer: Results shown are estimates for educational purposes only and do not constitute financial, tax, legal, or investment advice. Actual payments vary based on lender, credit score, loan type, and local assessments. Consult a licensed mortgage professional for your specific situation.
Arkansas Mortgage Calculator Guide
Buying a home in Arkansas requires understanding local costs. The median home price in the state sits around $219,000, which means your down payment and loan amount will heavily dictate your monthly expenses. Because Arkansas has an average property tax rate of 0.62%, factoring this into your monthly mortgage payment is essential for an accurate budget.
Beyond principal and interest, homeowners insurance in Arkansas averages $2,600 per year. Local weather risks and property age can push this number higher. By using our pre-loaded local averages, you get a realistic view of your true housing costs rather than just a basic principal calculation.
If you put down less than 20%, you will also need to pay Private Mortgage Insurance (PMI). Adjust the down payment field above to see exactly how your PMI drops off once you reach that 20% equity threshold in Arkansas.
Arkansas's average property tax rate of 0.62% is significantly below the national average of 1.07%. Properties are assessed at 20% of market value before the millage rate is applied, which further reduces the effective tax base. The state also offers a homestead property tax credit of up to $375 annually for primary residences. On a $219,000 home, annual property taxes average approximately $1,358 — making Arkansas one of the more tax-friendly states for homeowners.
Frequently Asked Questions
Arkansas has an average property tax rate of 0.62%, well below the national average of 1.07%. The state offers a homestead tax credit of up to $375 per year for primary residences. On a $219,000 home, annual taxes average approximately $1,358.
Bentonville and Northwest Arkansas have experienced rapid price appreciation due to Walmart's global headquarters, Tyson Foods, and a deliberate effort to attract tech and creative industry workers. Median prices in Bentonville now exceed $420,000 — roughly double the statewide median — making it an outlier in an otherwise very affordable state.
The Arkansas Development Finance Authority (ADFA) offers the Move-Up program with competitive 30-year fixed-rate mortgages, a Down Payment Assistance program providing up to $15,000 for qualifying buyers, and a Mortgage Credit Certificate (MCC) program that reduces federal tax liability for eligible first-time homeowners.
Yes, particularly outside of Northwest Arkansas. Low home prices, below-average property taxes, and strong ADFA assistance programs make Arkansas one of the more accessible states for first-time buyers in the South. The main consideration is that homeowners insurance rates have risen due to tornado and severe storm risk.
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