# Arkansas mortgages: low housing costs, ADFA help and the homestead credit

> Arkansas mortgage numbers: a $215,600 median home, ADFA down-payment help up to $15,000, the $600 homestead credit and the state transfer tax.

URL: https://mortgage-math-us.com/location/arkansas/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median Arkansas home is worth $215,600 and costs about **$1,601 a month** with 10% down at the 7.24% national average rate, including property tax at 0.52%. Homeowners can take a homestead property tax credit of up to $600 a year, and the Arkansas Development Finance Authority (ADFA) adds $1,000–$15,000 in down-payment help. The state transfer tax is 0.33% of the price — about $711 on the median home.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value in Arkansas | $215,600 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US05) | 2024 ACS 1-year |
| Median owner costs with a mortgage | $1,375/mo | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=040XX00US05) | 2024 ACS 1-year |
| Median household income | $62,106/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US05) | 2024 ACS 1-year |
| Effective property tax rate | 0.52% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US05) | 2024 ACS 1-year |
| Homestead property tax credit, up to | $600 | [Arkansas DFA Assessment Coordination Division: Property Tax Relief](https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/) | 2026 tax bills |
| ADFA down-payment help, up to | $15,000 | [Arkansas Development Finance Authority: Down Payment Assistance Program](https://adfa.arkansas.gov/programs/homeloans/down-payment-assistance-program/) | Sep 11, 2026 |
| State real estate transfer tax | 0.33% | [Arkansas Department of Finance and Administration](https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/miscellaneous-tax/arkansas-miscellaneous-tax-laws/real-property-transfer/) | Oct 8, 2026 |

## Arkansas housing costs, ranked

On almost every housing cost the Census Bureau tracks, Arkansas sits near the bottom of the list — good news for buyers, with one caveat about incomes.

*Arkansas compared with the US (Census ACS 2024 1-year; rank among the states and DC, lowest first)*

| | Arkansas | United States | Arkansas rank |
|---|---:|---:|---|
| Median home value | $215,600 | $360,600 | 3rd-lowest |
| Median owner costs with a mortgage | $1,375/mo | $2,035/mo | 2nd-lowest |
| Median gross rent | $982/mo | $1,487/mo | 4th-lowest |
| Effective property tax rate | 0.52% | 0.89% | 12th-lowest |
| Median household income | $62,106 | $81,604 | 4th-lowest |

Lower incomes offset some of that advantage, but not all of it: the median home costs 3.5 times the median household income in Arkansas, lower than the US ratio of 4.4. Prices vary widely between Northwest Arkansas, central Arkansas and the Delta, so local figures can look very different from the statewide median.

## Monthly payment on a median Arkansas home

> **Worked example: $215,600 home, 10% down, 30-year fixed at 7.24%**
>
> | Monthly cost | Amount |
> |---|---:|
> | Principal and interest on $194,040 | $1,322 |
> | Property tax at 0.52% | $93 |
> | Homeowners insurance (national average, $4.90 per $1,000) | $88 |
> | PMI (midpoint of Freddie Mac’s typical range) | $97 |
> | **Total** | **$1,601** |
> 
> The insurance line uses Freddie Mac’s national average because there is no official Arkansas average in our data; get real quotes, especially for older roofs.

The [mortgage payment calculator](https://mortgage-math-us.com/tools/mortgage-payment-calculator/?price=216000&down=10&tax=0.52&state=AR) opens with these inputs so you can change the price, down payment or rate.

## ADFA StartSmart, Move-Up and down-payment help

ADFA lends through participating lenders. Its down-payment assistance only comes paired with one of its two first mortgages:

| | StartSmart | Move-Up |
|---|---|---|
| Who it’s for | First-time buyers — no principal residence owned in 3 years (waived in targeted counties and for veterans) | First-time or repeat buyers; the home must be your primary residence |
| Loan types | FHA, VA, USDA Rural Development, Freddie Mac conventional (HFA Advantage) | FHA, VA, conventional, USDA Rural Development |
| Limits | Purchase price up to $500,000; income limits by county and household size | Qualifying income up to $142,000; price within the conforming loan limit |
| Minimum credit score | 640 | 640 |
| Down-payment assistance | $1,000–$15,000 second mortgage over 10 years | Same |

The StartSmart price cap is about 2.3× the state’s median home value, so it rarely gets in the way outside the most expensive neighborhoods.

> **Worked example: ADFA help on the median home**
>
> An FHA loan on $215,600 needs $7,546 down at 3.5%. Add closing costs at the low end of the CFPB’s 2%–5% range and you need about $11,858 in cash. The maximum ADFA second mortgage of $15,000 is enough to cover both, leaving nothing to bring at the low end of closing costs. It is a loan repaid over 10 years, not a grant, so ask the lender what its payment will be and include it in your budget.

For federal options that work alongside ADFA, see [FHA loans](https://mortgage-math-us.com/loan-types/fha-loans/) and [USDA loans](https://mortgage-math-us.com/loan-types/usda-loans/), which cover much of rural Arkansas.

## The homestead credit and Amendment 79

Arkansas cuts the property tax bill on your primary home in two ways, both claimed through the county assessor:

1. **Homestead property tax credit.** Up to $600 a year off the bill, starting with 2026 tax bills. Each owner can claim one homestead credit a year. On the median home, where the tax at the state’s effective rate is about $1,121 a year, the full credit would cover about 54% of it — but your actual bill depends on the local millage, so check it first.
2. **Assessment caps.** Under Amendment 79, the taxable value of a homestead can rise no more than 5% a year until it reaches full assessed value. New construction and major improvements are added on top. Owners who are 65 or older or disabled can freeze the taxable value of their homestead; the freeze ends when the home is sold.

Apply for the credit with your county assessor as soon as the home becomes your primary residence.

## Arkansas’s real estate transfer tax

Arkansas charges a state transfer tax of 0.33% of the consideration when a deed is recorded — about $711 on the median home and $990 on a $300,000 sale. The contract usually says who pays it. There is no state mortgage tax. The [closing cost estimator](https://mortgage-math-us.com/tools/closing-cost-calculator/?state=AR) adds the transfer tax to lender, title and prepaid costs.

## What Arkansas’s median income buys

At the median household income of $62,106, Freddie Mac’s guideline of keeping housing under 30% of gross income allows $1,553 a month. With 10% down at today’s average rate and the state tax ratio, that supports about **$209,000** — $6,600 below the median home value. The [affordability calculator](https://mortgage-math-us.com/tools/affordability-calculator/?state=AR&income=62106) runs your own income, and the [rent vs buy calculator](https://mortgage-math-us.com/tools/rent-vs-buy-calculator/?state=AR&price=216000&rent=982) compares buying with renting at the state’s median rent.

## Frequently asked questions

### What is the homestead credit in Arkansas?

Arkansas homeowners can get a homestead property tax credit of up to $600 a year on their primary residence, starting with 2026 tax bills. Apply through your county assessor.

### Does Arkansas have first-time home buyer programs?

Yes. ADFA’s StartSmart program serves first-time buyers (no principal residence owned in 3 years, with exceptions for targeted counties and veterans) and can be paired with $1,000–$15,000 in down-payment assistance.

### What credit score do I need for ADFA?

Both StartSmart and Move-Up require a credit score of at least 640. StartSmart caps the purchase price at $500,000; Move-Up caps qualifying income at $142,000.

### How much is the transfer tax in Arkansas?

The state transfer tax is 0.33% of the sale price, about $711 on the median Arkansas home. There is no state mortgage tax.

### What is the property tax rate in Arkansas?

Census data put the effective rate at 0.52% of home value, with a median bill of $1,113 a year. Amendment 79 limits increases in a homestead’s taxable value to 5% a year.

### How much house can I afford in Arkansas?

At the state’s median household income of $62,106, keeping housing under 30% of income supports a home of about $209,000 with 10% down at today’s average rate.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US05) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US05) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US05) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=040XX00US05) — Median gross rent (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Arkansas Development Finance Authority: Down Payment Assistance Program](https://adfa.arkansas.gov/programs/homeloans/down-payment-assistance-program/) — ADFA Down Payment Assistance Program, up to; ADFA Down Payment Assistance Program, from; ADFA Down Payment Assistance second mortgage term (Sep 11, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Minimum FHA down payment; Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [Arkansas Development Finance Authority: StartSmart First-Time Home Buyer Program](https://adfa.arkansas.gov/programs/homeloans/startsmart-first-time-home-buyer-program/) — ADFA StartSmart purchase price limit; ADFA StartSmart: no principal residence owned in the past; ADFA minimum credit score (StartSmart and Move-Up) (Jul 28, 2026)
- [Arkansas Department of Finance and Administration](https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/miscellaneous-tax/arkansas-miscellaneous-tax-laws/real-property-transfer/) — State real estate transfer tax (Oct 8, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [Arkansas DFA Assessment Coordination Division: Property Tax Relief](https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/) — Arkansas homestead property tax credit, up to (per year); Arkansas: most a homestead’s taxable value can rise in a year (Amendment 79) (2026 tax bills)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=040XX00US05) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=010XX00US) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=010XX00US) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=010XX00US) — Median household income (2024 ACS 1-year)
- [Arkansas Development Finance Authority: Move-Up Loan Program](https://adfa.arkansas.gov/programs/homeloans/move-up-loan-program) — ADFA Move-Up qualifying income limit (Jul 28, 2026)
- [ADFA: Down Payment Assistance Program](https://adfa.arkansas.gov/programs/homeloans/down-payment-assistance-program/)
- [ADFA: StartSmart first-time homebuyer program](https://adfa.arkansas.gov/programs/homeloans/startsmart-first-time-home-buyer-program/)
- [Arkansas Assessment Coordination Division: Property tax relief](https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/property-tax-relief/)

_General information, not financial advice._