Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Maryland. Updated for 2026.
Arkansas wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $195K and lower overall costs, Arkansas offers meaningful savings compared to Maryland. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Arkansas saves you approximately $1,579/month ($18,948/year) compared to Maryland, based on median home prices with identical loan terms.
There's a dramatic price gap between these two states. Homes in Arkansas cost 54% less than in Maryland — that's a difference of $225K on the median home. For buyers relocating from Maryland to Arkansas, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Maryland home could fund a much larger down payment in Arkansas, potentially eliminating PMI and reducing your monthly payment dramatically.
Arkansas has a moderate property tax advantage at 0.62% versus Maryland's 1.09%. While the rate gap of 0.47% may seem small, it translates to an annual difference of approximately $3,369 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $27K in savings.
Insurance costs favor Maryland at $1,700/year versus $2,500/year in Arkansas, a difference of $800 annually. While not the largest cost factor, this adds up to over $8K 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. Maryland averages $11K in closing costs (2.5% of purchase price) while Arkansas averages $3K (1.5%). Much of Maryland's higher costs come from its 1.5% transfer tax, which adds $6K to the median home purchase. 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 Maryland's MD Mortgage Program offers Up to $25,000 DPA. 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.
The bottom line: Arkansas homes cost $225K less than Maryland on average. That translates to roughly $1,579 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.