B+
3%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
14%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Fayetteville Arkansas National
Cost of living10386100
Goods & Services10298100
Groceries9295100
Health care10188100
Housing11465100
Transportation9690100
Utilities9492100

An Overview of Cost of Living in Fayetteville, AR

Getting a feel for the cost of living in Fayetteville is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Fayetteville is 103, which is 3% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Fayetteville aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. Fayetteville residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

What Do Locals Say About the Cost of Living in Fayetteville?

The most insightful perspective on a city comes from its residents. We recently surveyed 11 locals to gauge their perception of the cost of living in Fayetteville. The feedback revealed that 9% of respondents found the cost of living to be reasonable, with prices on the decline, while 91% regarded it as notably expensive with prices that continue to rise.

Is Fayetteville Affordable?

Is Fayetteville affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Fayetteville, for instance, where the median home price falls 25.7% higher than the national average, and monthly rent rates are 11.8% lower than usual. Additionally, median income levels contribute to the equation, with Fayetteville flaunting a median household income of $47,350, 14.4% lower than the national norm.

What Factors can Influence the Cost of Living in Fayetteville?

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Fayetteville, the utilities index registers 5.9% lower than the national average.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Fayetteville, is 14.4% higher than the national average.

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Where is the Data From?

The Fayetteville cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Fayetteville is 20% higher than the Arkansas average
  • The cost of living in Fayetteville is 3% higher than the national average
  • Fayetteville housing is 14% higher than the national average
  • Arkansas general sales tax is 27% higher than the national average
  • Arkansas state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Fayetteville

See all the best places to live around Fayetteville

Compare Fayetteville, AR Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$96,350$8,029$2,248$2,891
      Renters$31,651$2,638$738$950
      A good indicator of the general affordability of housing in Fayetteville, AR, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Fayetteville, the median monthly income is $96,350 for those who own their own homes. Under the standard rule, that income level would allow for $2,248 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $31,651, per the median income in the area. That would allow for renters to spend up to $738 on monthly rental expenses.

      Arkansas Sales Tax

      State General Sales Tax With Max Surtax
      Arkansas 6.5% 11.625%

      Arkansas Income Tax

      State Income Tax (Low) Income Tax (High)
      Arkansas 2% 4.9%

      Goods & Services

      Item Fayetteville National avg. Difference
      Haircut $21.65$24.2610.8%
      Beauty Salon $45.00$45.561.2%
      Toothpaste $3.68$3.700.5%
      Shampoo $1.08$1.2815.5%
      Movie $11.50$12.135.2%
      Bowling $14.71$18.0018.3%

      Groceries

      Item Fayetteville National avg. Difference
      Ground Beef $5.81$5.840.4%
      Fried Chicken $1.39$1.5711.8%
      Milk $4.52$4.673.2%
      Potatoes $5.22$4.935.9%
      Pizza $10.10$12.0916.4%
      Beer $10.21$10.412.0%

      Health Care

      Item Fayetteville National avg. Difference
      Optometrist $99.78$125.6820.6%
      Doctor $108.55$135.7820.1%
      Dentist $83.89$113.2926.0%
      Ibuprofen $10.16$10.654.6%
      Lipitor $454.89$468.602.9%

      Housing

      Item Fayetteville National avg. Difference
      Home Price $232,100.00$184,700.0025.7%
      Avg. Mortgage Payment $1,863.97$2,346.6920.6%
      Apartment Rent $837.00$949.0011.8%

      Transportation

      Item Fayetteville National avg. Difference
      Gasoline $3.01$3.4613.0%
      Tire Balancing $52.21$59.9212.9%

      Utilities

      Item Fayetteville National avg. Difference
      All Electricity $150.82$193.9922.3%
      Phone $203.29$192.255.7%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Springtown, AR136982.1%
      Lincoln, AR2,4659010.3%
      West Fork, AR2,622927.7%
      Elkins, AR3,283946.0%
      Springdale, AR80,433945.7%
      Fayetteville, AR86,6221032.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Newport Beach, CA86,694325225.0%
      Avondale, AZ86,09111010.1%
      Waukegan, IL87,157982.1%
      Ogden, UT87,1751000.1%
      St. George, UT87,17611616.1%
      Fayetteville, AR86,6221032.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.