Is it cheaper to live in Little Rock or Memphis?

Little Rock, AR is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 3% below Memphis, TN's $1,110, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Little Rock versus $38,000 in Memphis.

Which has lower taxes, Little Rock or Memphis?

Little Rock 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).

Little Rock vs Memphis Cost of Living 2026

Little Rock

Arkansas

$1,080/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 $1,080 in Little Rock, AR versus $1,110 in Memphis, TN. Overall, Little Rock, AR is roughly 3% cheaper to live in day-to-day than Memphis, TN, driven mainly by rent.

Median household income is $60,583 in Little Rock, AR and $51,211 in Memphis, TN — about 15% higher in Little Rock, 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.

Little Rock, AR

Memphis, TN

Rent

Studio

$981

$877

+11% in Little Rock, AR

1 Bedroom

$904

$948

+5% in Memphis, TN

2 Bedroom

$1,064

$1,073

+1% in Memphis, TN

3 Bedroom

$1,292

$1,281

+1% in Little Rock, AR

Buying a Home

Median Home Value

$221,200

$157,100

+29% in Little Rock, AR

Income

Median Household Income

$60,583

$51,211

+15% in Little Rock, AR

Metro Median Wage (annual)

$45,790

$46,890

+2% in Memphis, TN

People & Lifestyle

Median Age

36.4 yr

34.3 yr

+2.1 yr in Little Rock, AR

Homeownership

54.2%

46.0%

+8.2 pp in Little Rock, AR

Bachelor's+ (25+)

44.0%

28.2%

+15.8 pp in Little Rock, AR

Avg Commute

18.3 min

21.3 min

+3.0 min in Memphis, TN

Crime (per 100k/yr)

Violent Crime

1,673

2,507.6

+50% in Memphis, TN

Property Crime

5,251.5

6,966.3

+33% 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

62.7°F

63.1°F

+0.4°F in Memphis, TN

Annual Precipitation

49.8 in

53.7 in

+3.9 in in Memphis, TN

Gas

Regular Gasoline

$3.62/gal

$3.94/gal

+9% 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)

14.4

14.5

+1% in Memphis, TN

Natural Gas ($/MCF)

$25.93

$16.83

+35% in Little Rock, 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

Little Rock vs Memphis — FAQ

Is it cheaper to live in Little Rock or Memphis?: Little Rock, AR is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 3% below Memphis, TN's $1,110, mainly because of rent.
How much more do you need to earn to live in Little Rock than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Little Rock versus $38,000 in Memphis.
Which has lower taxes, Little Rock or Memphis?: Little Rock 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).