Is it cheaper to live in Chicago or Fayetteville?

Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 33% below Chicago, IL's $1,470, mainly because of rent.

How much more do you need to earn to live in Chicago than in Fayetteville?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $33,000 in Fayetteville.

Which has lower taxes, Chicago or Fayetteville?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Fayetteville under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Chicago vs Fayetteville Cost of Living 2026

Chicago

Illinois

$1,470/mo est.

Fayetteville

Arkansas

$990/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,470 in Chicago, IL versus $990 in Fayetteville, AR. Overall, Fayetteville, AR is roughly 33% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $59,074 in Fayetteville, AR — about 21% higher in Chicago, IL. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax.

Chicago, IL

Fayetteville, AR

Rent

Studio

$1,186

$709

+40% in Chicago, IL

1 Bedroom

$1,258

$817

+35% in Chicago, IL

2 Bedroom

$1,406

$999

+29% in Chicago, IL

3 Bedroom

$1,554

$1,430

+8% in Chicago, IL

Buying a Home

Median Home Value

$315,200

$322,500

+2% in Fayetteville, AR

Income

Median Household Income

$75,134

$59,074

+21% in Chicago, IL

Metro Median Wage (annual)

$54,720

$46,610

+15% in Chicago, IL

People & Lifestyle

Median Age

35.7 yr

28.7 yr

+7.0 yr in Chicago, IL

Homeownership

45.5%

41.9%

+3.6 pp in Chicago, IL

Bachelor's+ (25+)

43.3%

49.8%

+6.5 pp in Fayetteville, AR

Avg Commute

33.5 min

18.2 min

+15.3 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

429.4

+20% in Chicago, IL

Property Crime

3,489.9

2,392.2

+31% in Chicago, IL

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

Climate

Avg Annual Temperature

52.7°F

57.1°F

+4.4°F in Fayetteville, AR

Annual Precipitation

38.0 in

48.5 in

+10.5 in in Fayetteville, AR

Gas

Regular Gasoline

$4.24/gal

$3.62/gal

+15% in Chicago, IL

Area: Chicago vs Gulf Coast (PADD 3).

Public Transit

Base Fare (one-way)

$2.50

—

Adult base one-way fare — CTA vs — (2026).

Utilities

Electricity (¢/kWh)

19.9

14.1

+29% in Chicago, IL

Natural Gas ($/MCF)

$19.71

$27.86

+41% in Fayetteville, AR

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

Groceries

Milk (gal)

$4.31

$4.00

+7% in Chicago, IL

Bread (lb)

$1.66

$1.75

+5% in Fayetteville, AR

Eggs (doz)

$3.63

$2.21

+39% in Chicago, IL

Ground Beef (lb)

$6.77

$6.45

+5% in Chicago, IL

Chicken (lb)

$2.10

$1.90

+9% in Chicago, IL

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (IL / AR)

6.25%

6.5%

+0.3 pp in AR

Income Tax (top rate)

4.95%

3.90%

+1.1 pp in IL

Chicago vs Fayetteville — FAQ

Is it cheaper to live in Chicago or Fayetteville?: Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 33% below Chicago, IL's $1,470, mainly because of rent.
How much more do you need to earn to live in Chicago than in Fayetteville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $33,000 in Fayetteville.
Which has lower taxes, Chicago or Fayetteville?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Fayetteville 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).