Is it cheaper to live in Fayetteville or Salem?

Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 15% below Salem, OR's $1,170, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Fayetteville versus $40,000 in Salem.

Which has lower taxes, Fayetteville or Salem?

Fayetteville is taxed under Arkansas's rules (a top state income tax rate of 3.90% and a 6.5% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Fayetteville vs Salem Cost of Living 2026

Fayetteville

Arkansas

$990/mo est.

Salem

Oregon

$1,170/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $990 in Fayetteville, AR versus $1,170 in Salem, OR. Overall, Fayetteville, AR is roughly 15% cheaper to live in day-to-day than Salem, OR, driven mainly by rent.

Median household income is $59,074 in Fayetteville, AR and $71,900 in Salem, OR — about 18% higher in Salem, OR. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Fayetteville, AR

Salem, OR

Rent

Studio

$709

$1,075

+52% in Salem, OR

1 Bedroom

$817

$989

+21% in Salem, OR

2 Bedroom

$999

$1,337

+34% in Salem, OR

3 Bedroom

$1,430

$1,778

+24% in Salem, OR

Buying a Home

Median Home Value

$322,500

$382,400

+19% in Salem, OR

Income

Median Household Income

$59,074

$71,900

+22% in Salem, OR

Metro Median Wage (annual)

$46,610

$55,310

+19% in Salem, OR

People & Lifestyle

Median Age

28.7 yr

35.7 yr

+7.0 yr in Salem, OR

Homeownership

41.9%

55.7%

+13.8 pp in Salem, OR

Bachelor's+ (25+)

49.8%

31.4%

+18.4 pp in Fayetteville, AR

Avg Commute

18.2 min

22.4 min

+4.2 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

429.4

540.6

+26% in Salem, OR

Property Crime

2,392.2

2,878.6

+20% in Salem, OR

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

53.0°F

+4.1°F in Fayetteville, AR

Annual Precipitation

48.5 in

39.7 in

+8.8 in in Fayetteville, AR

Gas

Regular Gasoline

$3.62/gal

$5.21/gal

+44% in Salem, OR

Area: Gulf Coast (PADD 3) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

14.1

16.3

+16% in Salem, OR

Natural Gas ($/MCF)

$27.86

$21.60

+22% in Fayetteville, AR

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Salem, OR

Bread (lb)

$1.75

$2.04

+17% in Salem, OR

Eggs (doz)

$2.21

$2.19

+1% in Fayetteville, AR

Ground Beef (lb)

$6.45

$7.36

+14% in Salem, OR

Chicken (lb)

$1.90

$2.01

+6% in Salem, OR

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (AR / OR)

6.5%

None

+6.5 pp in AR

Income Tax (top rate)

3.90%

9.90%

+6.0 pp in OR

Fayetteville vs Salem — FAQ

Is it cheaper to live in Fayetteville or Salem?: Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 15% below Salem, OR's $1,170, mainly because of rent.
How much more do you need to earn to live in Fayetteville than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Fayetteville versus $40,000 in Salem.
Which has lower taxes, Fayetteville or Salem?: Fayetteville is taxed under Arkansas's rules (a top state income tax rate of 3.90% and a 6.5% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).