How Much House Can I Afford in Arkansas?
A typical rule is that your housing payment shouldn’t exceed 28% of your monthly income, with total debt staying under 36%. Use these benchmarks to calculate what’s affordable for you.
Why Central Arkansas is a Great Place to Buy
Central Arkansas, including Little Rock and surrounding areas, offers one of the most affordable costs of living in the U.S. This low cost of living allows you to stretch your budget further, often meaning larger homes or more desirable neighborhoods for the same price compared to other states. Property taxes are low, and insurance premiums are competitive, making homeownership more accessible here than in many other markets.
The amount of house you can afford depends on several factors, including your income, debt, down payment, and the loan's interest rate. Many financial experts recommend using two models to help determine a comfortable mortgage payment: the 28/36 rule. The idea is that your monthly housing costs should not exceed 28% of your gross income, and your total debt payments (including your mortgage) should stay under 36% of your gross income.
Want to see us Applying the Models with a $200,000 Home and discuss Additional Budget Considerations? Click learn more!
