Is it cheaper to live in Fairbanks or Little Rock?

Little Rock, AR is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 20% below Fairbanks, AK's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $36,000 in Little Rock.

Which has lower taxes, Fairbanks or Little Rock?

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

Fairbanks vs Little Rock Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Little Rock

Arkansas

$1,080/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 $1,080 in Little Rock, AR. Overall, Little Rock, AR is roughly 20% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $60,583 in Little Rock, AR — about 16% 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

Little Rock, AR

Rent

Studio

$883

$981

+11% in Little Rock, AR

1 Bedroom

$1,076

$904

+16% in Fairbanks, AK

2 Bedroom

$1,428

$1,064

+25% in Fairbanks, AK

3 Bedroom

$2,019

$1,292

+36% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$221,200

+13% in Fairbanks, AK

Income

Median Household Income

$72,077

$60,583

+16% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$45,790

+26% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

36.4 yr

+7.8 yr in Little Rock, AR

Homeownership

40.5%

54.2%

+13.7 pp in Little Rock, AR

Bachelor's+ (25+)

26.5%

44.0%

+17.5 pp in Little Rock, AR

Avg Commute

14.1 min

18.3 min

+4.2 min in Little Rock, AR

Crime (per 100k/yr)

Violent Crime

726.1

1,673

+130% in Little Rock, AR

Property Crime

3,504.2

5,251.5

+50% in Little Rock, 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

62.7°F

+35.0°F in Little Rock, AR

Annual Precipitation

10.8 in

49.8 in

+38.9 in in Little Rock, 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 Little Rock, 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 Little Rock, 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 Little Rock — FAQ

Is it cheaper to live in Fairbanks or Little Rock?: Little Rock, AR is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 20% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Little Rock?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $36,000 in Little Rock.
Which has lower taxes, Fairbanks or Little Rock?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Little Rock 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).