Is it cheaper to live in Fairbanks or Fayetteville?

Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 27% below Fairbanks, AK's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $33,000 in Fayetteville.

Which has lower taxes, Fairbanks or Fayetteville?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Fayetteville under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Fairbanks vs Fayetteville Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Fayetteville

Arkansas

$990/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,350 in Fairbanks, AK versus $990 in Fayetteville, AR. Overall, Fayetteville, AR is roughly 27% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $59,074 in Fayetteville, AR — about 18% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax.

Fairbanks, AK

Fayetteville, AR

Rent

Studio

$883

$709

+20% in Fairbanks, AK

1 Bedroom

$1,076

$817

+24% in Fairbanks, AK

2 Bedroom

$1,428

$999

+30% in Fairbanks, AK

3 Bedroom

$2,019

$1,430

+29% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$322,500

+26% in Fayetteville, AR

Income

Median Household Income

$72,077

$59,074

+18% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$46,610

+25% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

28.7 yr

+0.1 yr in Fayetteville, AR

Homeownership

40.5%

41.9%

+1.4 pp in Fayetteville, AR

Bachelor's+ (25+)

26.5%

49.8%

+23.3 pp in Fayetteville, AR

Avg Commute

14.1 min

18.2 min

+4.1 min in Fayetteville, AR

Crime (per 100k/yr)

Violent Crime

726.1

429.4

+41% in Fairbanks, AK

Property Crime

3,504.2

2,392.2

+32% in Fairbanks, AK

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

Climate

Avg Annual Temperature

27.7°F

57.1°F

+29.4°F in Fayetteville, AR

Annual Precipitation

10.8 in

48.5 in

+37.7 in in Fayetteville, AR

Gas

Regular Gasoline

$5.21/gal

$3.62/gal

+31% in Fairbanks, AK

Area: West Coast (PADD 5) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

28.2

14.1

+50% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$27.86

+61% in Fayetteville, AR

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

Groceries

Milk (gal)

$4.82

$4.00

+17% in Fairbanks, AK

Bread (lb)

$2.04

$1.75

+14% in Fairbanks, AK

Eggs (doz)

$2.19

$2.21

+1% in Fayetteville, AR

Ground Beef (lb)

$7.36

$6.45

+12% in Fairbanks, AK

Chicken (lb)

$2.01

$1.90

+6% in Fairbanks, AK

Bananas (lb)

$0.70

$0.62

+12% in Fairbanks, AK

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

State Taxes

Sales Tax (AK / AR)

None

6.5%

+6.5 pp in AR

Income Tax (top rate)

None

3.90%

+3.9 pp in AR

Fairbanks vs Fayetteville — FAQ

Is it cheaper to live in Fairbanks or Fayetteville?: Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 27% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Fayetteville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $33,000 in Fayetteville.
Which has lower taxes, Fairbanks or Fayetteville?: Fairbanks is taxed under Alaska's rules (no state income tax and no 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).