Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Minnesota. Updated for 2026.
Arkansas wins 3 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 Minnesota. 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 $1,028/month ($12,336/year) compared to Minnesota, based on median home prices with identical loan terms.
Arkansas offers meaningfully lower home prices than Minnesota, with median prices running 42% less ($140K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Minnesota may find Arkansas far more accessible, particularly when combined with local down payment assistance programs.
Arkansas has a moderate property tax advantage at 0.62% versus Minnesota's 1.12%. While the rate gap of 0.50% may seem small, it translates to an annual difference of approximately $2,543 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $20K in savings.
Both states offer down payment assistance for first-time buyers. Arkansas's ADFA Down Payment Assistance provides Up to $15,000 DPA, while Minnesota's Minnesota Housing Start Up offers Up to $18,000 deferred loan. 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 $140K less than Minnesota on average. That translates to roughly $1,028 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.