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Arkansas vs Washington:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arkansas and Washington. Updated for 2026.

MetricArkansasWashington
Median Home Price$195K$580K
Property Tax Rate0.62%0.98%
Avg Closing Costs$3K$8K
Closing Cost %1.5%1.4%
Transfer Tax0.33%1.78%
Homeowners Insurance$2,500/yr$1,600/yr
First-Time Buyer Program
ADFA Down Payment Assistance
Up to $15,000 DPA
WSHFC Home Advantage
Up to $10,000 DPA
Verdict

Arkansas wins 4 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 Washington. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Arkansas
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$101
Monthly Insurance$208
Monthly PMI$73
Total PITI$1,491/mo
Annual property tax: $1,209
Washington
Home Price$580,000
Down Payment (10%)$58,000
Loan Amount$522,000
Monthly P&I$3,299
Monthly Property Tax$474
Monthly Insurance$133
Monthly PMI$218
Total PITI$4,124/mo
Annual property tax: $5,684

Buying in Arkansas saves you approximately $2,633/month ($31,596/year) compared to Washington, based on median home prices with identical loan terms.

Which State Is Right for You?

There's a dramatic price gap between these two states. Homes in Arkansas cost 66% less than in Washington — that's a difference of $385K on the median home. For buyers relocating from Washington to Arkansas, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Washington home could fund a much larger down payment in Arkansas, potentially eliminating PMI and reducing your monthly payment dramatically.

Arkansas has a moderate property tax advantage at 0.62% versus Washington's 0.98%. While the rate gap of 0.36% may seem small, it translates to an annual difference of approximately $4,475 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $36K in savings.

Insurance costs favor Washington at $1,600/year versus $2,500/year in Arkansas, a difference of $900 annually. While not the largest cost factor, this adds up to over $9K 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. Washington averages $8K in closing costs (1.4% of purchase price) while Arkansas averages $3K (1.5%). Much of Washington's higher costs come from its 1.78% transfer tax, which adds $10K to the median home purchase. 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 Washington's WSHFC Home Advantage offers Up to $10,000 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.

Key Takeaway

The bottom line: Arkansas homes cost $385K less than Washington on average. That translates to roughly $2,633 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.

Compare Other States

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