Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Pennsylvania. 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 Pennsylvania. 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 $641/month — that’s $7,692/year or $231K 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 Pennsylvania, you need a household income of approximately $91K/year. In Arkansas, you need $64K/year — less by $27K/year. That $27K income gap means Arkansas is accessible to a significantly wider range of households.
Arkansas offers meaningfully lower home prices than Pennsylvania, with median prices running 30% less ($85K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Pennsylvania 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 Pennsylvania's 1.36%. While the rate gap of 0.74% may seem small, it translates to an annual difference of approximately $2,599 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $21K in savings.
Insurance costs favor Pennsylvania at $1,400/year versus $2,500/year in Arkansas, a difference of $1,100 annually. While not the largest cost factor, this adds up to over $11K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Both states offer down payment assistance for first-time buyers. Arkansas's ADFA Down Payment Assistance provides Up to $15,000 DPA, while Pennsylvania's PHFA Keystone Advantage offers Up to $6,000 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 $85K less than Pennsylvania on average. That translates to roughly $641 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.