Is it cheaper to live in Fargo or Fort Smith?

Fort Smith, AR is cheaper. Its monthly baseline of $780 (1BR rent + utilities) runs about 19% below Fargo, ND's $960, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $32,000 a year in Fargo versus $24,000 in Fort Smith.

Which has lower taxes, Fargo or Fort Smith?

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

Fargo vs Fort Smith Cost of Living 2026

Fargo

North Dakota

$960/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 $960 in Fargo, ND versus $780 in Fort Smith, AR. Overall, Fort Smith, AR is roughly 19% cheaper to live in day-to-day than Fargo, ND, driven mainly by rent.

Median household income is $66,029 in Fargo, ND and $52,692 in Fort Smith, AR — about 20% 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

Fort Smith, AR

Rent

Studio

$671

$634

+6% in Fargo, ND

1 Bedroom

$804

$603

+25% in Fargo, ND

2 Bedroom

$956

$863

+10% in Fargo, ND

3 Bedroom

$1,368

$1,087

+21% in Fargo, ND

Buying a Home

Median Home Value

$269,800

$168,100

+38% in Fargo, ND

Income

Median Household Income

$66,029

$52,692

+20% in Fargo, ND

Metro Median Wage (annual)

$51,050

$39,560

+23% in Fargo, ND

People & Lifestyle

Median Age

32.2 yr

36.6 yr

+4.4 yr in Fort Smith, AR

Homeownership

44.1%

53.0%

+8.9 pp in Fort Smith, AR

Bachelor's+ (25+)

43.2%

25.3%

+17.9 pp in Fargo, ND

Avg Commute

15.8 min

17.3 min

+1.5 min in Fort Smith, AR

Crime (per 100k/yr)

Violent Crime

504.9

844.7

+67% in Fort Smith, AR

Property Crime

3,726.4

3,697.6

+1% 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

61.7°F

+19.3°F in Fort Smith, AR

Annual Precipitation

22.6 in

45.5 in

+22.9 in in Fort Smith, 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 Fort Smith, 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 Fort Smith, 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 Fort Smith — FAQ

Is it cheaper to live in Fargo or Fort Smith?: Fort Smith, AR is cheaper. Its monthly baseline of $780 (1BR rent + utilities) runs about 19% below Fargo, ND's $960, mainly because of rent.
How much more do you need to earn to live in Fargo than in Fort Smith?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $32,000 a year in Fargo versus $24,000 in Fort Smith.
Which has lower taxes, Fargo or Fort Smith?: Fargo is taxed under North Dakota's rules (a top state income tax rate of 2.50% and a 5% 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).