Starting values: $215,600, which is the Arkansas median (49th of 51), 20% down and a 7.40% rate. Monthly cost: $1,443.47 ($1,194.22 loan, $93.42 property tax, $155.83 homeowners insurance). Put 5% down and add PMI and it rises to $1,752.72.
Homestead exemptions and property tax relief
The homestead credit reduces the property tax on an owner-occupied home. Act 174 of 2026 raises it to $675 starting with the 2026 assessment year, though the Department of Finance and Administration's page still shows the old $500/$600 amounts. Owners 65 and older or disabled can also freeze the assessed value of their home.
First-time buyer programs
The Arkansas Development Finance Authority offers first mortgages with down payment assistance. Its Down Payment Assistance program and the Dream Down Payment Initiative (a soft second loan with county income and price limits) require homebuyer education and an inspection.
Transfer and recording taxes
The real property transfer tax is $3.30 per $1,000, about $711 on a $215,600 home. The law makes both parties liable, and by custom it is often split.
Closing costs to plan for
Buyer costs are modest: lender and title charges, half of the transfer tax, and the first insurance premium, which is often the biggest prepaid item here.
When property tax bills are due
Arkansas collects property tax a year behind: the bill for one year's assessment goes out the next spring and is due by October 15. Partial payments are generally accepted until the deadline. The homestead credit, up to $600 starting with 2026 bills, comes off that bill and cannot exceed the tax owed.
Before you buy in Arkansas
A sale resets the value. After a home changes hands, the assessor values it at 20% of appraised value on the next assessment date, and the new owner gets no cap until the second assessment date after the transfer. Your first bills can therefore be higher than the seller's. After that, Amendment 79 limits increases on a homestead to 5% a year during a reappraisal. Apply for the homestead credit with the county assessor by October 15. To appeal a value, start with the assessor; the last day to schedule a hearing with the county board of equalization is the third Monday in August.
2026 loan limit in Arkansas
FHFA 2026 one-unit conforming limits: no county is high-cost, so $832,750 applies statewide. So $172,480, the 80% loan on a median home, needs no jumbo financing.
Arkansas numbers used above
| Measure | Arkansas | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $215,600 | $360,600 |
| Effective property tax rate | 0.52% (40th highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $1,870 | $1,737 |
| Median household income | $62,106 | $81,604 |
| Median gross rent | $982 | $1,487 |
| Income needed at 28% (20% down) | $61,863 | – |
Frequently asked questions
When are Arkansas property taxes due?
By October 15 each year, for the previous year's assessment.
How much is the Arkansas homestead credit?
Up to $600 a year starting with 2026 bills. Apply with the county assessor by October 15.
Will my Arkansas taxes go up after I buy?
Possibly. The home is reassessed at 20% of appraised value after the sale, and the 5% cap does not apply until the second assessment date.
What is the median-home payment in Arkansas?
About $1,443.47 a month on a $215,600 home with 20% down at 7.40%, including tax and insurance.
Sources
- Arkansas DFA, property tax relief
- Arkansas DFA, residential real estate
- Arkansas DFA, real property transfer tax
- Arkansas General Assembly (Act 174 of 2026, HB1103)
- ADFA down payment assistance
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · Arkansas paycheck