Is it cheaper to live in Billings or Fort Smith?

Fort Smith, AR is cheaper. Its monthly baseline of $780 (1BR rent + utilities) runs about 25% below Billings, MT's $1,040, mainly because of rent.

How much more do you need to earn to live in Billings than in Fort Smith?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $24,000 in Fort Smith.

Which has lower taxes, Billings or Fort Smith?

Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Fort Smith under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Billings vs Fort Smith Cost of Living 2026

Billings

Montana

$1,040/mo est.

Fort Smith

Arkansas

$780/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Billings, MT versus $780 in Fort Smith, AR. Overall, Fort Smith, AR is roughly 25% cheaper to live in day-to-day than Billings, MT, driven mainly by rent.

Median household income is $71,855 in Billings, MT and $52,692 in Fort Smith, AR — about 27% higher in Billings, MT. Montana has a top state income tax rate of 5.65% and no state sales tax; Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax.

Billings, MT

Fort Smith, AR

Rent

Studio

$877

$634

+28% in Billings, MT

1 Bedroom

$889

$603

+32% in Billings, MT

2 Bedroom

$1,102

$863

+22% in Billings, MT

3 Bedroom

$1,398

$1,087

+22% in Billings, MT

Buying a Home

Median Home Value

$311,800

$168,100

+46% in Billings, MT

Income

Median Household Income

$71,855

$52,692

+27% in Billings, MT

Metro Median Wage (annual)

$49,060

$39,560

+19% in Billings, MT

People & Lifestyle

Median Age

38.1 yr

36.6 yr

+1.5 yr in Billings, MT

Homeownership

64.8%

53.0%

+11.8 pp in Billings, MT

Bachelor's+ (25+)

37.0%

25.3%

+11.7 pp in Billings, MT

Avg Commute

16.7 min

17.3 min

+0.6 min in Fort Smith, AR

Crime (per 100k/yr)

Violent Crime

750.2

844.7

+13% in Fort Smith, AR

Property Crime

3,123.5

3,697.6

+18% in Fort Smith, AR

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

48.2°F

61.7°F

+13.5°F in Fort Smith, AR

Annual Precipitation

13.7 in

45.5 in

+31.8 in in Fort Smith, AR

Gas

Regular Gasoline

$4.27/gal

$3.62/gal

+15% in Billings, MT

Area: Rocky Mountain (PADD 4) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

15.1

14.1

+7% in Billings, MT

Natural Gas ($/MCF)

$10.12

$27.86

+175% in Fort Smith, AR

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.00

+17% in Billings, MT

Bread (lb)

$2.04

$1.75

+14% in Billings, MT

Eggs (doz)

$2.19

$2.21

+1% in Fort Smith, AR

Ground Beef (lb)

$7.36

$6.45

+12% in Billings, MT

Chicken (lb)

$2.01

$1.90

+6% in Billings, MT

Bananas (lb)

$0.70

$0.62

+12% in Billings, MT

Average prices — West vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MT / AR)

None

6.5%

+6.5 pp in AR

Income Tax (top rate)

5.65%

3.90%

+1.8 pp in MT

Billings vs Fort Smith — FAQ

Is it cheaper to live in Billings or Fort Smith?: Fort Smith, AR is cheaper. Its monthly baseline of $780 (1BR rent + utilities) runs about 25% below Billings, MT's $1,040, mainly because of rent.
How much more do you need to earn to live in Billings than in Fort Smith?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $24,000 in Fort Smith.
Which has lower taxes, Billings or Fort Smith?: Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Fort Smith under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).