What are average mortgage rates in Arkansas in 2026?

Mortgage rates in Arkansas generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Arkansas mortgage calculator to model your payment at current rates.

How much are closing costs in Arkansas?

Closing costs in Arkansas typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Arkansas mortgage calculator to include closing costs in your calculation.

What are property tax rates in Arkansas?

Property tax rates in Arkansas range from 0.3% to 2.5% of assessed value. CalcDeck's Arkansas calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Arkansas?

Arkansas offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Arkansas calculator to see how programs affect your payment.

How do I use the CalcDeck Arkansas mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Arkansas averages. Get instant monthly payment, total interest, and amortization schedule.

Arkansas Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Arkansas homeowners.

Arkansas at a Glance

Median Home Price: $196,000
Property Tax Rate: 0.61%
Median Household Income: $58,309
Annual Property Tax: $1,196

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Arkansas

Based on the Arkansas median home price of $196,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$156,800	$186,200
Principal and Interest	$1,012	$1,202
Property Tax (AR)	$100	$100
Homeowners Insurance	$125	$125
PMI	$0	$78
Total Monthly	$1,236	$1,504

How Much House Can You Afford in Arkansas?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$52,990/year to afford Arkansas's median home
With 5% down, you need ~$64,445/year
Arkansas's median household income is $58,309

Arkansas insight: Arkansas's property tax rate of 0.61% is near the national average.

Arkansas Housing Market Overview

Arkansas is among the most affordable states for homebuyers, with a median home price of just $196,000—less than half the national median. Little Rock's median is $215,000, Fayetteville $285,000 (driven by University of Arkansas), and Fort Smith $165,000. Inventory sits at 3.5 months, giving buyers considerable negotiating power. The median household income of $58,309 yields a price-to-income ratio of 3.4, very affordable. The effective property tax rate of 0.61% is low, costing just $1,196/year on a median home. However, Arkansas has experienced significant flooding—2019 and 2023 events devastated parts of the state—so flood insurance is critical in river-adjacent areas. Northwest Arkansas (Bentonville/Rogers hub) is the state's fastest-growing market, with prices rising 6–8% annually due to Walmart, Tyson, and JB Hunt corporate expansion.

First-Time Homebuyer Programs in Arkansas

The Arkansas Development Finance Authority (ADFA) offers the ADFA Move Up program, providing 30-year fixed-rate mortgages with down payment assistance of up to $10,000 for first-time buyers. The Arkansas Dream Down Payment Initiative (ADDI) offers grants up to $15,000 for households earning below 80% of area median income in targeted counties. ADFA also partners with local lenders for the Mortgage Credit Certificate (MCC) program, providing a 50% federal tax credit (capped at $2,000/year) on mortgage interest. For rural buyers, the USDA Rural Development loan is widely available across most of Arkansas outside Little Rock and Fayetteville metros. Income limits for ADFA programs: Pulaski County caps at $66,500 for a two-person household; rural counties cap at $57,600.

Tips for Homebuyers in Arkansas

1) Arkansas's 0.61% property tax means monthly taxes are only ~$100 on a median home—budget more for insurance instead. 2) Flood risk is severe along the Arkansas, White, and Ouachita rivers; always check FEMA maps and budget $800–$1,500/year for flood insurance. 3) Radon testing is recommended statewide, especially in the Ozark Plateau where levels can exceed EPA action levels. 4) NWA (Bentonville/Rogers) is competitive—homes under $300,000 get multiple offers within 48 hours. 5) Septic systems are common outside city limits; get a septic inspection ($300–$500) and ask about drain field age. 6) Tornado risk is moderate statewide—consider a home with a storm shelter or basement, though basements are rare in Arkansas clay soil.

Try the Mortgage Calculator with Your Numbers

Arkansas Mortgage FAQ

What is the median home price in Arkansas?

The median home price in Arkansas is approximately $196,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Arkansas?

The effective property tax rate in Arkansas is approximately 0.61% (Tax Foundation). On a $196,000 home, that is about $1,196/year in property taxes.

How much income do I need to buy a home in Arkansas?

Using the 28/36 rule with 20% down at 6.7%, you would need about $52,990/year to afford the median Arkansas home at $196,000. With 5% down (including PMI), about $64,445.

What will my monthly mortgage payment be in Arkansas?

On Arkansas's median home price of $196,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $1,236. With 5% down including PMI, about $1,504.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.