Median one-bedroom rent across the cities we track is $904 in Arkansas versus $870 in Iowa. Overall, Iowa runs roughly 4% cheaper on rent than Arkansas, its main day-to-day cost driver.
Median household income across tracked cities is $60,583 in Arkansas and $63,966 in Iowa — about 5% 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
$904
$870
+4% in Arkansas
Median Home Value
$221,200
$183,700
+17% in Arkansas
Income (median across tracked cities)
Median Household Income
$60,583
$63,966
+6% in Iowa
Climate (median across tracked cities)
Avg Annual Temperature
62.7°F
50.9°F
+11.8°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 $870 runs about 4% below Arkansas's $904, 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 $36,000 a year in Arkansas versus $35,000 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 1/1 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.