Fayetteville vs Little Rock: Housing Costs in Arkansas
Side-by-side comparison of home prices, mortgage payments, and housing costs between Fayetteville and Little Rock, Arkansas. Using Arkansas's 0.62% property tax rate and $2,500/year insurance. Updated for 2026.
Metric
Fayetteville
Little Rock
Median Home Price
$295K
$215K
Population
93,949
202,591
Average Rent
$1,150/mo
$1,050/mo
Est. Monthly Mortgage (P&I)
$1,678/mo
$1,223/mo
Est. Monthly Property Tax
$152/mo
$111/mo
Est. Monthly Insurance
$208/mo
$208/mo
Est. Total PITI
$2,150/mo
$1,623/mo
Price-to-Rent Ratio
21.4
17.1
Verdict
Little Rock edges out Fayetteville in affordability, saving you roughly $527/month on total housing costs. Both cities are in Arkansas, so property tax rates and insurance costs are the same — the difference comes down to home prices and what you get for your money in each market.
Monthly Payment Comparison
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Arkansas's 0.62% property tax rate.
Fayetteville
Home Price$295,000
Down Payment (10%)$29,500
Loan Amount$265,500
Monthly P&I$1,678
Monthly Property Tax$152
Monthly Insurance$208
Monthly PMI$111
Total PITI$2,150/mo
Annual property tax: $1,829
Little Rock
Home Price$215,000
Down Payment (10%)$21,500
Loan Amount$193,500
Monthly P&I$1,223
Monthly Property Tax$111
Monthly Insurance$208
Monthly PMI$81
Total PITI$1,623/mo
Annual property tax: $1,333
Buying in Little Rock saves you approximately $527/month ($6,324/year) compared to Fayetteville, based on median home prices with identical loan terms.
Which City Is Better For...
First-Time Buyers
Little Rock is the better choice for first-time buyers, with a median price of $215K versus $295K in Fayetteville. That's $80K less to save for a down payment. You'd need roughly $8K for an FHA 3.5% down payment in Little Rock, compared to $10K in Fayetteville. Arkansas offers the ADFA Down Payment Assistance program (Up to $15,000 DPA) which applies in both cities.
Real Estate Investment
Little Rock has the better price-to-rent ratio at 17.1x versus 21.4x in Fayetteville. A lower ratio generally signals better rental income relative to purchase price. Average rent in Little Rock is $1,050/month on a $215K median home, making it a stronger candidate for buy-and-rent investors.
Families
Little Rock (pop. 202,591) offers more amenities, schools, and services typical of a larger city, while Fayetteville (pop. 93,949) may offer a quieter, more community-oriented lifestyle. Little Rock offers both more options and lower housing costs, making it attractive for families who want urban amenities without a premium price.