Homebuyers relocating to Arkansas often focus on sale prices and mortgage rates, but the ongoingcost of ownership can make or break a budget—especially for newcomers comparing states. A new SmartAsset 2025 analysis places Fayetteville among the Top 20 U.S. cities with the lowest property-tax burdens, measuring how much of local homeowner income goes to annual property taxes.
In the ranking, Fayetteville, Arkansas, comes in at No. 15 nationwide. SmartAsset reports:
- Property taxes as a percentage of income: 1.56%
- Median annual property taxes paid: $1,943
- Median income of households with a mortgage: $124,225
- Median monthly housing costs: $1,739
What “property-tax burden” means—and why it’s useful for movers
Unlike lists that focus only on tax rates or tax bills, SmartAsset’s “burden” metric compares median annual property taxes paid to median household income for homeowners—a lens that better reflects day-to-day affordability for typical households.
For relocating families, that matters because a city can have modest home prices but still feel expensive if local taxes consume a large share of income—or, conversely, have higher tax bills but remain manageable if local incomes are significantly higher. Fayetteville’s placement suggests that, for homeowners with mortgages, property taxes are taking a comparatively small slice of income.
Fayetteville is the only Arkansas city in the Top 20
SmartAsset’s lowest-burden list is dominated by Alabama and Arizona metros and suburbs, with Fayetteville standing out as the lone Arkansas entry in the Top 20.
That’s notable for Northwest Arkansas newcomers weighing Fayetteville against other fast-growing regions in the South and Mountain West: it’s a signal that the area’s cost structure isn’t just about listing prices—it’s also about the recurring tax load that comes after closing.
How Arkansas property taxes work (plain-English version)
If you’re new to Arkansas, property taxes can feel opaque because the bill is shaped by local millage rates and the state’s assessment rules.
In Washington County (home to Fayetteville), the county’s information pages outline the basic mechanics:
- A mill equals $1 of tax per $1,000 of assessed value.
- Arkansas uses an assessed value that is 20% of market value (the county explains this directly in its millage-rate primer).
- The county assessor determines fair market value and maintains parcel records—an important starting point for how your property is valued.
Why this matters for newcomers: your property taxes can change over time as valuations and local millages change, and your specific school district and taxing units will affect the final bill. SmartAsset’s figures are median-based—useful for comparisons, but not a substitute for a property-specific estimate.
What Fayetteville’s ranking means for your relocation budget
For households considering a move to Northwest Arkansas, Fayetteville’s Top 20 placement provides a quick takeaway: property taxes are relatively light compared with income, at least for the typical mortgaged homeowner captured in the dataset.
That can free up room in the monthly budget for other priorities newcomers often cite—childcare, commuting, higher insurance premiums in a new market, or simply saving more aggressively after a cross-country move.
A practical next step before you buy
If Fayetteville is on your shortlist, treat the ranking as a screening tool, then validate with local numbers:
- Check the current millage rates for the area you’re targeting.
- Review how your property will be valued and how assessments work locally (the assessor is the hub).
- Run a scenario based on your expected purchase price—because the median homeowner and your home choice may look very different.
- For Arkansas-bound buyers, Fayetteville’s showing is a strong data point: in a national comparison, it’s not just affordable to buy—it can also be affordable to keep.