Is it cheaper to live in Fargo or Fayetteville?

Fargo, ND is cheaper. Its monthly baseline of $960 (1BR rent + utilities) runs about 3% below Fayetteville, AR's $990, mainly because of natural gas costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $32,000 a year in Fargo versus $33,000 in Fayetteville.

Which has lower taxes, Fargo or Fayetteville?

Fargo is taxed under North Dakota's rules (a top state income tax rate of 2.50% and a 5% state sales tax); Fayetteville under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Fargo vs Fayetteville Cost of Living 2026

Fargo

North Dakota

$960/mo est.

Fayetteville

Arkansas

$990/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $960 in Fargo, ND versus $990 in Fayetteville, AR. Overall, Fargo, ND is roughly 3% cheaper to live in day-to-day than Fayetteville, AR, driven mainly by natural gas costs.

Median household income is $66,029 in Fargo, ND and $59,074 in Fayetteville, AR — about 11% higher in Fargo, ND. North Dakota has a top state income tax rate of 2.50% and a 5% state sales tax; Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax.

Fargo, ND

Fayetteville, AR

Rent

Studio

$671

$709

+6% in Fayetteville, AR

1 Bedroom

$804

$817

+2% in Fayetteville, AR

2 Bedroom

$956

$999

+4% in Fayetteville, AR

3 Bedroom

$1,368

$1,430

+5% in Fayetteville, AR

Buying a Home

Median Home Value

$269,800

$322,500

+20% in Fayetteville, AR

Income

Median Household Income

$66,029

$59,074

+11% in Fargo, ND

Metro Median Wage (annual)

$51,050

$46,610

+9% in Fargo, ND

People & Lifestyle

Median Age

32.2 yr

28.7 yr

+3.5 yr in Fargo, ND

Homeownership

44.1%

41.9%

+2.2 pp in Fargo, ND

Bachelor's+ (25+)

43.2%

49.8%

+6.6 pp in Fayetteville, AR

Avg Commute

15.8 min

18.2 min

+2.4 min in Fayetteville, AR

Crime (per 100k/yr)

Violent Crime

504.9

429.4

+15% in Fargo, ND

Property Crime

3,726.4

2,392.2

+36% in Fargo, ND

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

Climate

Avg Annual Temperature

42.4°F

57.1°F

+14.7°F in Fayetteville, AR

Annual Precipitation

22.6 in

48.5 in

+25.9 in in Fayetteville, AR

Gas

Regular Gasoline

$3.85/gal

$3.62/gal

+6% in Fargo, ND

Area: Midwest (PADD 2) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

14.1

about equal

Natural Gas ($/MCF)

$18.21

$27.86

+53% in Fayetteville, AR

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

Groceries

Milk (gal)

$4.31

$4.00

+7% in Fargo, ND

Bread (lb)

$1.66

$1.75

+5% in Fayetteville, AR

Eggs (doz)

$3.63

$2.21

+39% in Fargo, ND

Ground Beef (lb)

$6.77

$6.45

+5% in Fargo, ND

Chicken (lb)

$2.10

$1.90

+9% in Fargo, ND

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (ND / AR)

6.5%

+1.5 pp in AR

Income Tax (top rate)

2.50%

3.90%

+1.4 pp in AR

Fargo vs Fayetteville — FAQ

Is it cheaper to live in Fargo or Fayetteville?: Fargo, ND is cheaper. Its monthly baseline of $960 (1BR rent + utilities) runs about 3% below Fayetteville, AR's $990, mainly because of natural gas costs.
How much more do you need to earn to live in Fargo than in Fayetteville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $32,000 a year in Fargo versus $33,000 in Fayetteville.
Which has lower taxes, Fargo or Fayetteville?: Fargo is taxed under North Dakota's rules (a top state income tax rate of 2.50% and a 5% 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).