Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Virginia. 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 Virginia. 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 $1,349/month — that’s $16,188/year or $486K 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 Virginia, you need a household income of approximately $122K/year. In Arkansas, you need $64K/year — less by $58K/year. That $58K income gap means Arkansas is accessible to a significantly wider range of households.
There's a dramatic price gap between these two states. Homes in Arkansas cost 51% less than in Virginia — that's a difference of $205K on the median home. For buyers relocating from Virginia to Arkansas, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Virginia home could fund a much larger down payment in Arkansas, potentially eliminating PMI and reducing your monthly payment dramatically.
Property tax rates are similar in both states (Arkansas: 0.62%, Virginia: 0.82%), 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.
Insurance costs favor Virginia at $1,700/year versus $2,500/year in Arkansas, a difference of $800 annually. While not the largest cost factor, this adds up to over $8K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. Virginia averages $6K in closing costs (1.5% of purchase price) while Arkansas averages $3K (1.5%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Arkansas's ADFA Down Payment Assistance provides Up to $15,000 DPA, while Virginia's Virginia Housing DPA Grant offers Up to 2.5% 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 $205K less than Virginia on average. That translates to roughly $1,349 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.