Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Tennessee. 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 Tennessee. 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 $929/month — that’s $11,148/year or $334K 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 Tennessee, you need a household income of approximately $104K/year. In Arkansas, you need $64K/year — less by $40K/year. That $40K income gap means Arkansas is accessible to a significantly wider range of households.
Arkansas offers meaningfully lower home prices than Tennessee, with median prices running 43% less ($145K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Tennessee may find Arkansas far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (Arkansas: 0.62%, Tennessee: 0.56%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Both states offer down payment assistance for first-time buyers. Arkansas's ADFA Down Payment Assistance provides Up to $15,000 DPA, while Tennessee's THDA Great Choice Home Loan 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 $145K less than Tennessee on average. That translates to roughly $929 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.