Is it cheaper to live in Fairbanks or Fort Smith?

Fort Smith, AR is cheaper. Its monthly baseline of $780 (1BR rent + utilities) runs about 42% below Fairbanks, AK's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $24,000 in Fort Smith.

Which has lower taxes, Fairbanks or Fort Smith?

Fairbanks is taxed under Alaska's rules (no state income tax 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).

Fairbanks vs Fort Smith Cost of Living 2026

Fairbanks

Alaska

$1,350/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 $1,350 in Fairbanks, AK versus $780 in Fort Smith, AR. Overall, Fort Smith, AR is roughly 42% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $52,692 in Fort Smith, AR — about 27% 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

Fort Smith, AR

Rent

Studio

$883

$634

+28% in Fairbanks, AK

1 Bedroom

$1,076

$603

+44% in Fairbanks, AK

2 Bedroom

$1,428

$863

+40% in Fairbanks, AK

3 Bedroom

$2,019

$1,087

+46% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$168,100

+34% in Fairbanks, AK

Income

Median Household Income

$72,077

$52,692

+27% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$39,560

+36% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

36.6 yr

+8.0 yr in Fort Smith, AR

Homeownership

40.5%

53.0%

+12.5 pp in Fort Smith, AR

Bachelor's+ (25+)

26.5%

25.3%

+1.2 pp in Fairbanks, AK

Avg Commute

14.1 min

17.3 min

+3.2 min in Fort Smith, AR

Crime (per 100k/yr)

Violent Crime

726.1

844.7

+16% in Fort Smith, AR

Property Crime

3,504.2

3,697.6

+6% 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

27.7°F

61.7°F

+34.0°F in Fort Smith, AR

Annual Precipitation

10.8 in

45.5 in

+34.6 in in Fort Smith, 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 Fort Smith, 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 Fort Smith, 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 Fort Smith — FAQ

Is it cheaper to live in Fairbanks or Fort Smith?: Fort Smith, AR is cheaper. Its monthly baseline of $780 (1BR rent + utilities) runs about 42% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Fort Smith?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $24,000 in Fort Smith.
Which has lower taxes, Fairbanks or Fort Smith?: Fairbanks is taxed under Alaska's rules (no state income tax 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).