CALCMONEY // HOME AFFORDABILITY // AR // FAYETTEVILLE
How much house can you afford in Fayetteville? Based on local median home prices, current AR mortgage rates, and Fayetteville property tax data.
$295,000
$1,842/mo
$78,962/yr
$220,262
Monthly housing costs of $1,842 represent 35.7% of Fayetteville's median gross monthly income ($5,167/mo). At 35.7%, median-income buyers in Fayetteville are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $295,000 |
| Down Payment (20%) | $59,000 |
| Loan Amount | $236,000 |
| Monthly PI Payment | $1,562 |
| Monthly Property Tax | $157 |
| Monthly Insurance Est. | $123 |
| Total Monthly PITI | $1,842 |
| Housing Cost % of Income | 35.7% |
| Required Income (28% rule) | $78,962/yr |
| Max Affordable Home | $220,262 |
$10,325
$2,366/mo
Fayetteville Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $295,000 | Fayetteville city median |
| Down Payment (20%) | $59,000 | Conventional loan |
| Monthly PITI | $1,842 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $78,962 | Annual gross |
| Max Affordable Home | $220,262 | Based on median income |
| FHA Down (3.5%) | $10,325 | Minimum FHA |
| Housing Cost % of Income | 35.7% | Median income: $62,000/yr |
| Property Tax Rate | 0.64% | $1,888/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Fayetteville is $295,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $236,000, generating a monthly P&I payment of $1,562. Adding property taxes ($157/mo) and homeowners insurance ($123/mo) brings total monthly PITI to $1,842.
Fayetteville's property tax rate of 0.64% is among the lower rates in the country, which improves overall affordability by keeping total PITI closer to the principal and interest payment alone. On the Fayetteville median home, that is $157/month, or $1,888 per year.
Arkansas levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Fayetteville should factor state tax liability into their overall housing budget — mortgage interest may be deductible on both federal and state returns.
Using the 28% rule, a household earning Fayetteville's median income of $62,000/year can afford up to $1,447/month in total housing costs. Based on Fayetteville's mortgage rate of 6.95% and property tax rate of 0.64%, that translates to a maximum affordable home price of approximately $220,262 with 20% down on a 30-year loan.
To afford the median Fayetteville home priced at $295,000, you need an annual gross income of approximately $78,962. Total monthly housing costs (principal and interest of $1,562, property taxes of $157, and insurance of $123) come to $1,842/month, which equals 28% of the required income.
At the median home price of $295,000 and median household income of $62,000, the total monthly housing cost of $1,842 represents 35.7% of gross monthly income. This is well above the standard 28% threshold, making Fayetteville a challenging market for buyers at median income.
A conventional 20% down payment on the median Fayetteville home of $295,000 is $59,000. An FHA loan requires just 3.5% down — $10,325 — but adds mortgage insurance of roughly $202/month, bringing total FHA payments to $2,366/month.
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