Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and North Dakota. Updated for 2026.
North Dakota wins 4 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.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $438/month — that’s $5,256/year or $158K over the life of a 30-year loan. Buying in Arkansas is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in North Dakota, you need a household income of approximately $83K/year. In Arkansas, you need $64K/year — less by $19K/year. The $19K difference is meaningful but manageable for dual-income households.
Arkansas offers meaningfully lower home prices than North Dakota, with median prices running 24% less ($60K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of North Dakota 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 North Dakota's 0.98%. While the rate gap of 0.36% may seem small, it translates to an annual difference of approximately $1,290 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $10K 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 North Dakota's NDHFA FirstHome offers DCA up to $14,000. 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 and North Dakota are broadly similar in housing costs, with only $438/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.