Is it cheaper to live in Fayetteville or Memphis?

Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 11% below Memphis, TN's $1,110, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Fayetteville versus $38,000 in Memphis.

Which has lower taxes, Fayetteville or Memphis?

Fayetteville is taxed under Arkansas's rules (a top state income tax rate of 3.90% and a 6.5% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Fayetteville vs Memphis Cost of Living 2026

Fayetteville

Arkansas

$990/mo est.

Memphis

Tennessee

$1,110/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $990 in Fayetteville, AR versus $1,110 in Memphis, TN. Overall, Fayetteville, AR is roughly 11% cheaper to live in day-to-day than Memphis, TN, driven mainly by rent.

Median household income is $59,074 in Fayetteville, AR and $51,211 in Memphis, TN — about 13% higher in Fayetteville, AR. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; Tennessee has no state income tax and a 7% state sales tax.

Fayetteville, AR

Memphis, TN

Rent

Studio

$709

$877

+24% in Memphis, TN

1 Bedroom

$817

$948

+16% in Memphis, TN

2 Bedroom

$999

$1,073

+7% in Memphis, TN

3 Bedroom

$1,430

$1,281

+10% in Fayetteville, AR

Buying a Home

Median Home Value

$322,500

$157,100

+51% in Fayetteville, AR

Income

Median Household Income

$59,074

$51,211

+13% in Fayetteville, AR

Metro Median Wage (annual)

$46,610

$46,890

+1% in Memphis, TN

People & Lifestyle

Median Age

28.7 yr

34.3 yr

+5.6 yr in Memphis, TN

Homeownership

41.9%

46.0%

+4.1 pp in Memphis, TN

Bachelor's+ (25+)

49.8%

28.2%

+21.6 pp in Fayetteville, AR

Avg Commute

18.2 min

21.3 min

+3.1 min in Memphis, TN

Crime (per 100k/yr)

Violent Crime

429.4

2,507.6

+484% in Memphis, TN

Property Crime

2,392.2

6,966.3

+191% in Memphis, TN

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

Climate

Avg Annual Temperature

57.1°F

63.1°F

+6.0°F in Memphis, TN

Annual Precipitation

48.5 in

53.7 in

+5.2 in in Memphis, TN

Gas

Regular Gasoline

$3.62/gal

$3.85/gal

+6% in Memphis, TN

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

Public Transit

Base Fare (one-way)

—

$1.75

Adult base one-way fare — — vs MATA (2026).

Utilities

Electricity (¢/kWh)

14.1

+0% in Fayetteville, AR

Natural Gas ($/MCF)

$27.86

$19.75

+29% in Fayetteville, AR

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

Groceries

Milk (gal)

$4.00

about equal

Bread (lb)

$1.75

about equal

Eggs (doz)

$2.21

about equal

Ground Beef (lb)

$6.45

about equal

Chicken (lb)

$1.90

about equal

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (AR / TN)

6.5%

+0.5 pp in TN

Income Tax (top rate)

3.90%

None

+3.9 pp in AR

Fayetteville vs Memphis — FAQ

Is it cheaper to live in Fayetteville or Memphis?: Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 11% below Memphis, TN's $1,110, mainly because of rent.
How much more do you need to earn to live in Fayetteville than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Fayetteville versus $38,000 in Memphis.
Which has lower taxes, Fayetteville or Memphis?: Fayetteville is taxed under Arkansas's rules (a top state income tax rate of 3.90% and a 6.5% state sales tax); Memphis under Tennessee's (no state income tax and a 7% 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).