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Arkansas vs Hawaii:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Hawaii. Updated for 2026.

MetricArkansasHawaii
Median Home Price$195K$830K
Property Tax Rate0.62%0.28%
Avg Closing Costs$3K$12K
Closing Cost %1.5%1.5%
Transfer Tax0.33%0.2%
Homeowners Insurance$2,500/yr$1,200/yr
First-Time Buyer Program
ADFA Down Payment Assistance
Up to $15,000 DPA
HHFDC Hula Mae Program
Below-market rate mortgages
Verdict

Hawaii wins 3 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Arkansas has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Arkansas
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$101
Monthly Insurance$208
Monthly PMI$73
Total PITI$1,491/mo
Annual property tax: $1,209
Hawaii
Home Price$830,000
Down Payment (10%)$83,000
Loan Amount$747,000
Monthly P&I$4,722
Monthly Property Tax$194
Monthly Insurance$100
Monthly PMI$311
Total PITI$5,326/mo
Annual property tax: $2,324

Buying in Arkansas saves you approximately $3,835/month ($46,020/year) compared to Hawaii, based on median home prices with identical loan terms.

Which State Is Right for You?

There's a dramatic price gap between these two states. Homes in Arkansas cost 77% less than in Hawaii — that's a difference of $635K on the median home. For buyers relocating from Hawaii to Arkansas, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Hawaii home could fund a much larger down payment in Arkansas, potentially eliminating PMI and reducing your monthly payment dramatically.

Hawaii has a moderate property tax advantage at 0.28% versus Arkansas's 0.62%. While the rate gap of 0.34% may seem small, it translates to an annual difference of approximately $1,115 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $9K in savings.

Insurance costs favor Hawaii at $1,200/year versus $2,500/year in Arkansas, a difference of $1,300 annually. While not the largest cost factor, this adds up to over $13K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Closing costs are a one-time but significant expense. Hawaii averages $12K in closing costs (1.5% of purchase price) while Arkansas averages $3K (1.5%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Arkansas's ADFA Down Payment Assistance provides Up to $15,000 DPA, while Hawaii's HHFDC Hula Mae Program offers Below-market rate mortgages. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Arkansas homes cost $635K less than Hawaii on average. That translates to roughly $3,835 less per month in total housing costs if you choose Arkansas. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

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