Median one-bedroom rent across the cities we track is $904 in Arkansas versus $1,142 in Tennessee. Overall, Arkansas runs roughly 21% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $60,583 in Arkansas and $63,204 in Tennessee — about 4% higher in Tennessee. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
6.5%
7%
+0.5 pp in Tennessee
Income Tax (top rate)
3.90%
None
+3.9 pp in Arkansas
Housing (median across tracked cities)
Median 1BR Rent
$904
$1,142
+26% in Tennessee
Median Home Value
$221,200
$270,100
+22% in Tennessee
Income (median across tracked cities)
Median Household Income
$60,583
$63,204
+4% in Tennessee
Climate (median across tracked cities)
Avg Annual Temperature
62.7°F
61.3°F
+1.5°F in Arkansas
Arkansas vs Tennessee — FAQ
- Is it cheaper to live in Arkansas or Tennessee?
- Arkansas is cheaper on rent — its median one-bedroom of $904 runs about 21% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in Arkansas than in Tennessee?
- 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 $46,000 in Tennessee.
- Which has lower taxes, Arkansas or Tennessee?
- Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in Arkansas/Tennessee — 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.