Median one-bedroom rent across the cities we track is $817 in Arkansas versus $777 in Iowa. Overall, Iowa runs roughly 5% cheaper on rent than Arkansas, its main day-to-day cost driver.
Median household income across tracked cities is $59,074 in Arkansas and $64,497 in Iowa — about 8% higher in Iowa. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; Iowa has a top state income tax rate of 3.80% and a 6% state sales tax.
State Taxes
Sales Tax
6.5%
6%
+0.5 pp in Arkansas
Income Tax (top rate)
3.90%
3.80%
+0.1 pp in Arkansas
Housing (median across tracked cities)
Median 1BR Rent
$817
$777
+5% in Arkansas
Median Home Value
$221,200
$177,100
+20% in Arkansas
Income (median across tracked cities)
Median Household Income
$59,074
$64,497
+9% in Iowa
Climate (median across tracked cities)
Avg Annual Temperature
61.7°F
49.3°F
+12.4°F in Arkansas
Arkansas vs Iowa — FAQ
- Is it cheaper to live in Arkansas or Iowa?
- Iowa is cheaper on rent — its median one-bedroom of $777 runs about 5% below Arkansas's $817, based on the cities we track in each state.
- How much more do you need to earn to live in Arkansas than in Iowa?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $33,000 a year in Arkansas versus $31,000 in Iowa.
- Which has lower taxes, Arkansas or Iowa?
- Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax. Iowa has a top state income tax rate of 3.80% and a 6% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Arkansas/Iowa — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.