Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Texas. 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 Texas. 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 $1,170/month — that’s $14,040/year or $421K 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 Texas, you need a household income of approximately $114K/year. In Arkansas, you need $64K/year — less by $50K/year. That $50K income gap means Arkansas is accessible to a significantly wider range of households.
Arkansas offers meaningfully lower home prices than Texas, with median prices running 37% less ($115K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Texas may find Arkansas far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Arkansas charges 0.62% while Texas charges 1.8%, a gap of 1.18 percentage points. On the respective median homes, this means Texas homeowners pay roughly $5,580 per year in property taxes versus $1,209 in Arkansas. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Insurance costs favor Arkansas at $2,500/year versus $3,800/year in Texas, a difference of $1,300 annually. While not the largest cost factor, this adds up to over $13K 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 Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. 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 $115K less than Texas on average. That translates to roughly $1,170 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.