Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and South Dakota. Updated for 2026.
South 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.
Buying in Arkansas saves you approximately $789/month ($9,468/year) compared to South Dakota, based on median home prices with identical loan terms.
Arkansas offers meaningfully lower home prices than South Dakota, with median prices running 34% less ($100K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of South 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 South Dakota's 1.22%. While the rate gap of 0.60% may seem small, it translates to an annual difference of approximately $2,390 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $19K 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 South Dakota's SDHDA First-Time Homebuyer offers Fixed-rate FTB loans. 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 $100K less than South Dakota on average. That translates to roughly $789 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.