Cost of Living in Little Rock, AR
Little Rock is about 20% cheaper than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Little Rock at a Glance
On the median income of $66,553, state income tax is roughly $2,596/year.
Sources: Census ACS 2024, Tax Foundation.
Little Rock is the capital and largest city of Arkansas, sitting on the Arkansas River with a metro of roughly 750,000. The cost of living is about 13% below the national average, with housing running 27.5% below. Median homes at $195,000 make homeownership accessible on moderate incomes. The healthcare sector dominates the economy: UAMS Medical Center, Baptist Health, CHI St. Vincent, and Arkansas Children's Hospital make Little Rock a regional medical hub. State government, Dillard's corporate headquarters, and Windstream Holdings round out the employer base.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Little Rock
The River Market District along the Arkansas River has genuinely transformed downtown Little Rock with restaurants, a farmers' market, and the Clinton Presidential Library. The Big Dam Bridge (the longest pedestrian and bicycle bridge in North America built specifically for that purpose) connects miles of riverfront trails. The food scene, particularly Southern and barbecue, is underrated. The Hillcrest and Heights neighborhoods have walkable character with independent shops and restaurants. For healthcare professionals, the concentration of medical facilities means career options without relocation.
Neighborhoods
The Heights is the established residential neighborhood with character, restaurants, and walkability along Kavanaugh Boulevard. Hillcrest is adjacent and popular with young professionals. West Little Rock is suburban growth with shopping and chain dining. Downtown and the River Market are increasingly livable. Chenal Valley is affluent planned development. North Little Rock across the river is its own city with a revitalizing Argenta district. Maumelle is a planned community popular with families.
Things to Consider
Arkansas's income tax reaches 5.5%, and the combined sales tax of 9.25% is among the highest in the nation. The city has struggled with crime, particularly in some central and eastern neighborhoods. The state's political environment is conservative, which some find appealing and others find limiting. Summer heat and humidity are brutal. The job market outside healthcare and government is narrow. Little Rock's reputation, fairly or not, has struggled nationally. The public school system has faced challenges, leading many families to the suburbs.
Frequently Asked Questions About Little Rock
Very. The cost of living is about 13% below the national average. Median homes at $270,700 put homeownership within reach for most working families. The Heights and Hillcrest neighborhoods, which have genuine walkable charm, offer homes from $200,000 to $400,000. The trade-off is a high combined sales tax rate and a narrower job market than larger metros.
Genuinely so. The River Market District has been Little Rock's most successful revitalization project, with an indoor market hall, restaurants, the Clinton Presidential Library, and the Riverwalk trail. It is where Little Rock feels most like a modern, vibrant city. The Big Dam Bridge and extensive trail system along the Arkansas River add significant recreational value.
Little Rock's crime rate is above the national average, particularly for property crime. However, the crime is concentrated in specific areas, and neighborhoods like the Heights, Hillcrest, West Little Rock, Chenal Valley, and the suburbs are generally safe. The variation is significant. Research neighborhoods carefully and talk to locals about specific streets and blocks.